Sunday, June 11, 2023
HomeHeadlinesDalian iron ore rebounds on supply woes, easing of China COVID curbs

Subscribe

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

Dalian iron ore rebounds on supply woes, easing of China COVID curbs

Chinese iron ore futures rose on Monday, supported by supply concerns and shrinking portside inventories of the steelmaking ingredient, while the easing of some COVID-19 curbs in the world’s top steel producer also lifted trader sentiment.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange DCIOcv1ended daytime trade 3.9% higher at 834.50 yuan ($122.80) a tonne, after posting its biggest weekly loss in nearly three months on Friday.

On the Singapore Exchange, the most-active June contract SZZFM2 climbed 1.3% to $128.60 a tonne by 0315 GMT.

“Falling Australian and Brazilian iron ore shipments and arrivals into China week-on-week should provide modest support for fragile sentiment,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.

Iron ore and other steelmaking inputs were also supported following reports that Shanghai will gradually reopen for business following weeks of lockdowns, Widnell said.

Dalian coking coal DJMcv1surged 6.1% and coke DCJcv1jumped 5.4%.

Shanghai set out plans on Monday for the return of more normal life from June 1 and the end of a lockdown that has lasted more than six weeks and contributed to a sharp slowdown in China’s economic activity.

In Beijing, authorities have extended guidance to work from home in four districts, but have not enforced a city-wide lockdown.

“Robust blast furnace capacity utilization rates and daily (iron ore) offtakes, and depleting portside inventories should all provide support,” Widnell said.

Iron ore port inventories in China stood at 141.75 million tonnes, as of May 13, the lowest since October, according to data from SteelHome consultancy.

Construction steel rebar on the Shanghai Futures Exchange SRBcv1rose 1.4%, while hot-rolled coil SHHCcv1gained 1%. Stainless steel SHSScv1 climbed 1.9%.

China’s crude steel output picked up in April, rising 5.1% from a month earlier as the impact of environmental restrictions and COVID-19 disruptions eased, but it was still well below year-ago levels.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Trafigura publishes 2023 interim results showing a strong performance

Trafigura, a market leader in the global commodities industry, released its 2023 Interim Report today for the six-month period ended 31 March 2023. The results...

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

Celestyal Participates In Promotion Of The Tourist Destination Of Central Macedonia

Celestyal, the award-winning, number one choice for travellers to the Greek Islands and the...

Capesize, panamax gains drive Baltic index higher

The Baltic Exchange’s main sea freight index rose for a fourth straight session on...

Baltic rises to over 3-month peak on firm demand for larger vessels

The Baltic Exchange’s main sea freight index rose on Wednesday to scale its highest...

Baltic index logs best day in nearly 3 months

The Baltic Exchange’s main sea freight index posted its biggest single-day gain since mid-March...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Iraklio port tender set for another delay

The opening of the binding financial offers for 67% of Iraklio Port Authority had been scheduled for Thursday, but this is no longer expected...

APM Terminals extends concession of Kalundborg container terminal

APM Terminals has reached an agreement with the Port of Kalundborg to extend the concession of Kalundborg container terminal by 10 years to 2033. In...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...