Sunday, February 5, 2023
HomeHeadlinesDalian iron ore hits 3-week peak on China demand optimism


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

Dalian iron ore hits 3-week peak on China demand optimism

Iron ore stretched a rally into a fifth straight session on Thursday, with the benchmark Dalian contract scaling a three-week high while spot prices rose above $100 a tonne, buoyed by improved sentiment towards China’s property sector.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange ended daytime trading 1.8% up at 611.50 yuan ($95.74) a tonne, after touching 629 yuan earlier in the session, its highest level since Nov. 2.

Benchmark 62%-grade iron ore’s spot price in China jumped to $100.50 a tonne on Wednesday, also the strongest since Nov. 2, according to SteelHome consultancy data.

On the Singapore Exchange, the steelmaking ingredient’s front-month December contract was up 1.4% at $104.50 a tonne, as of 0705 GMT.

“Iron ore futures rallied on expectations of a turnaround in the demand outlook,” commodity strategists at ANZ wrote in a note. “Markets have been buoyed by strong Chinese announcements, including more support for its property sector.”

Some Chinese banks had been told by financial regulators to issue more loans to property firms for project development, Reuters reported on Monday citing two banking sources, in efforts to marginally ease liquidity strains across the industry.

Concerns about the debt problems of Chinese property developers, a sector that accounts for about a quarter of the domestic steel demand, had recently added downward pressure on prices of iron ore in the world’s biggest steel producer.

Adding to the positive mood, China’s Kaisa Group Holdings Ltd said it wants to extend the maturity of a $400 million bond by a year and a half as its seeks to avoid a messy default and resolve a liquidity crisis.

Construction steel rebar on the Shanghai Futures Exchange gained 0.9%, while hot-rolled coil advanced 1.3%. Stainless steel added 0.2%.

Dalian coking coal surged as much as 8.5% to its highest since Nov. 12, while coke rose 2.4%.

Dalian iron ore rises 21% from Nov. 19 bottom.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...