Benchmark Iron Ore Futures In China Jump On Supply Crunch At Mills

china_iron_ore

Chinese iron ore futures jumped 3% on Friday, rising for the second straight session and tracking fourth weekly gains from supply shortage at mills because of COVID-related disruptions.

Producers in the top steelmaking city of Tangshan are set to cut or suspend output as their raw material stocks can only feed production for several days while transportation remained constraint due to a temporary lockdown.

Average daily output of around 36,100 tonnes molten iron had been affected in Tangshan as of March 24, data compiled by Mysteel consultancy showed, amid blast furnaces maintenance because of supply crunch.

Coking coal and coke inventories at mills and coking plants surveyed by the consultancy fell 1.6% and 4.9%, respectively, this week from a week earlier.

The most-traded iron ore futures on the Dalian Commodity Exchange, for May delivery, gained as much as 3% to 851 yuan ($133.78) a tonne. They were up 2.4% at 846 yuan per tonne as of 0330 GMT.

Spot prices of iron ore with 62% iron content for delivery to China was unchanged for the second consecutive day and stood at $147 per tonne on Thursday, according to SteelHome consultancy.

Dalian coking coal futures DJMcv1 rose 2.1% to 3,064 yuan a tonne and coke futures DCJcv1 increased 2.8% to 3,701 yuan per tonne.

Steel futures on the Shanghai Futures Exchange remained range-bound as downstream demand was dented by the fresh outbreak.

Construction material steel rebar SRBcv1 was almost flat at 4,977 yuan a tonne from night session. Hot rolled coils added 1% to 5,243 yuan a tonne.

Stainless steel futures on the Shanghai bourse SHSScv1, for April delivery, fell 1.8% to 21,295 yuan per tonne.

Source: Reuters

LEAVE A COMMENT

×

Comments are closed.