Sunday, October 1, 2023
HomeHeadlinesDalian iron ore at one-week high on stimulus hope

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Dalian iron ore at one-week high on stimulus hope

Dalian iron ore futures extended gains on Monday to touch their highest in a week, as investor sentiment was bolstered by expectations of new stimulus policies following the release of weak industrial profit data on Saturday.

Profits at China’s industrial firms fell 20.6% in January-April from a year earlier, data from the National Bureau of Statistics (NBS) showed, as companies struggled with margin pressures and soft demand amid a faltering economic recovery.

Expectations of more economic stimulus policies arose partly because the NBS said China would focus on recovering and expanding demand in the next stage.

Meanwhile, market talk of May 26, that China would issue 5 trillion yuan of special bonds to support the economy, kept sentiment upbeat, though many analysts have argued against the possibility of such an issue.

The most-traded September iron ore on the Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trading 4.89% higher at 719 yuan ($104.02) a tonne, the highest since May 22.

“It’s mainly the expectation of macro-economic stimulus that drove the Dalian futures up today, but we believe the room for this round of rise will be relatively limited due to lingering downstream demand woes,” said Cheng Peng, a Beijing-based raw material analyst at Sinosteel Futures.

The benchmark June iron ore SZZFM3 on the Singapore Exchange reversed the downtrend in morning trade and was 1.66% higher at $102.25 a tonne, as of 0841 GMT, the highest since May 19.

“We expect prices to consolidate in the near term amid mixed factors; the remaining thin steel margins may limit the gains stemming from stimulus hopes,” said Connie Zhang, a ferrous analyst at consultancy Shanghai Metals Market.

Among other steelmaking ingredients, coking coal DJMcv1 rose 0.97% and coke DCJcv1 gained 0.28%.

Rebar on the Shanghai Futures Exchange SRBcv1 climbed 1.86% to 3,511 yuan a tonne, hot-rolled coil SHHCcv1 moved up 1.54%, wire rod SWRcv1 jumped 0.97% and stainless steel SHSScv1 ticked up 0.54%.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Sphinx Investment Corp Increases Stake in OceanPal

On September 28, 2023, an OceanPal SEC filing revealed that Sphinx Investment Corp. had raised its ownership in OceanPal, now holding a substantial stake...

Star Bulk Announces the Repurchase of 10 Million of Its Common Shares

Star Bulk announced that it entered into a Repurchase Agreement (with OCM XL Holdings, LP, a limited partnership incorporated in the Cayman Islands, pursuant...

Trafigura announces executive leadership changes

Trafigura Group Pte Ltd. has announced an evolution of its executive team to further strengthen leadership and focus across its global activities during a...

Woori, HMM, KOBC to buy Polaris in prospective $448 mln deal – report

Polaris Shipping Co. is poised to sell its entire stake at around 600 billion won ($447.5 million) to Woori Private Equity Asset Management Co....

Pyxis Tankers Announces Closing of Ultramax JV Investment

Pyxis Tankers, an international shipping company, reported that on September 14, 2023, the Company closed on its previously announced newly formed drybulk joint venture...

Baltic index snaps 4-day winning streak as capesize rates slip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index scales 11-month peak on strong capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index scales over 9-month high on capesize surge

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index rises to over 4-month high on stronger capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Houston-Japan VLGC freight rates reach multi-year high

VLGC freight rates from Houston to Chiba, Japan, reached $245/mt Sept. 21 for the...

Piraeus Port reports strong H1 2023 results

The Piraeus Port Authority SA, which operates Greece’s biggest and busiest port, reported a 48.8-percent increase in pre-tax earnings for H1 2023 – 49.4...

Greece names Thessaloniki port operator preferred bidder for Volos port

Greece’s privatisation agency has named the operator of Thessaloniki port as the preferred bidder for acquiring a 67% stake in the port of Volos,...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...

Port Hedland Iron Ore Exports Edge Up 4% in August

Pilbara Ports Authority has delivered a total monthly throughput of 62.8 million tonnes (Mt) for August 2023, consistent with the August 2022 throughput. The Port...