Dalian iron ore futures edged up on Wednesday after China reported its highest ever monthly imports of the steelmaking ingredient and record-high steel exports.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) TIO1! ended daytime trade 0.06% higher at 821 yuan ($117.72) a metric ton.
The benchmark February iron ore (SZZFG6) on the Singapore Exchange was down 0.36% at $107.95 a ton as of 0313 GMT.
China’s steel exports hit a record monthly high in December, data from the General Administration of Customs showed, fuelled by front-loading driven by Beijing’s announcement of an export licence requirement for shipments from 2026.
“Strong exports continued to offset weak demand,” an ANZ research report wrote on January 14.
Iron ore imports also hit a record high in December, as well as last year, as low inventories and improved steel margins encouraged mills to book more cargoes.
“With Chinese hot metal output firming in recent weeks, it’s clear mills have now begun replenishing steel inventories ahead of the Chinese New Year,” said Atilla Widnell, managing director at Navigate Commodities.
Such bullish conditions will persist until the Lunar New Year, he said.
However, persistently high iron ore prices, along with shrinking steel mill margins, might pressure buyers to hold off on restocking until a correction occurs, analysts said.
Other steelmaking ingredients on the DCE fell, with coking coal NYMEX:ACT1! and coke (DCJcv1) down 1.52% and 1.28%, respectively.
Steel benchmarks on the Shanghai Futures Exchange mostly gained ground. Rebar RBF1! strengthened 0.03%, wire rod (SWRcv1) gained 2.04% and stainless steel HRC1! firmed 0.83% Meanwhile, hot-rolled coil EHR1! loss 0.09%.
Source: Reuters