Sunday, October 1, 2023
HomeHeadlinesIron ore at two-week high on stimulus hope, supply disruption fears


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

Iron ore at two-week high on stimulus hope, supply disruption fears

Dalian and Singapore iron ore futures hit their highest in two weeks on Thursday as sentiment improved on the prospects of Chinese stimulus policies to revive the economy, better-than-expected factory activity data and supply disruption worries.

Weak manufacturing data has raised expectations of policy support for industry, analysts at investment bank ANZ said in a morning note.

The official manufacturing purchasing managers’ index (PMI) released on Wednesday fell to a five-month low of 48.8, contributing to broad weakness in the ferrous metals market that day.

However, the Caixin/S&P global PMI rose to 50.9 in May from 49.5 in April, above the 50-point index mark that separates growth from contraction, data showed on Thursday. The reading surpassed expectations of 49.5 in a Reuters poll.

Lifting the iron ore market is also concern about possible supply disruption, though some analysts played down that impact.

South African freight logistics group Transnet has suspended operations on its main iron ore railway line due to cable theft, it said in a statement on Wednesday.

The most-traded September iron ore on the Dalian Commodity Exchange (DCE) ended daytime trading 5.77% higher at 743 yuan ($107.49) a tonne, the highest since May 18.

The benchmark June iron ore on the Singapore Exchange was 3.38% higher at $104.65 a tonne, as of 0712 GMT, the highest since May 19.

“We do not think it will have a big impact on the market, as the temporary suspension on transportation will likely merely affect the shipment pace, without reducing overall shipment volumes much,” said Cheng Peng, a Beijing-based analyst at Sinosteel Futures.

The other steelmaking ingredients – coking coal and coke climbed 3.58% and 2.87%, respectively.

Higher raw materials prices supported steel prices as well. Rebar on the Shanghai Futures Exchange rose 2.84% to 3,546 yuan a tonne, hot-rolled coil grew 3.1%, wire rod gained 1.29% and stainless steel moved up 2.31%.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

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...