Saturday, June 3, 2023
HomeHeadlinesIron ore climbs above $120/T as supply concerns boost support


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

Iron ore climbs above $120/T as supply concerns boost support

Iron ore futures extended gains on Wednesday, with the Singapore benchmark contract vaulting past $120 a tonne to hit a fresh six-month peak, as concerns over supply added support to prices already boosted by brightening demand prospects in China.

Analysts said latest data showing lower iron ore shipment volumes particularly from Brazil and plunging cargo arrivals in top steel producer China were also driving prices of the steelmaking ingredient higher.

Iron ore’s most-active May contract on China’s Dalian Commodity Exchange ended daytime trade 1.6% higher at 847.50 yuan ($125.14) a tonne.

On the Singapore Exchange, benchmark February iron ore was up 1.1% at $121.30 a tonne, as of 0700 GMT.

“(Brazilian miner) Vale’s shipments have dropped significantly due to the impact of the rainy season,” Sinosteel Futures analysts said in a note.

Vale SA, one of the world’s largest iron ore producers, said last month it expected 2023 output to reach between 310 million and 320 million tonnes, flat compared with last year’s output forecast.

Global iron ore shipments in the first quarter are projected to decline also because of mine maintenance programmes and weather-related disruptions, analysts said.

Miner Ferrexpo, meanwhile, said its annual production of iron ore pellets slumped due to higher costs, logistical constraints and disruptions caused by the Russian invasion of Ukraine.

Most steel benchmarks on the Shanghai Futures Exchange and other Dalian steelmaking inputs also rose, with coking coal and coke up 2.3% and 3.6%, respectively.

Rebar climbed 1.3%, hot-rolled coil gained 0.9%, and wire rod added 0.3%. But stainless steel fell 1.3%.

Dalian iron ore has risen more than 40% from a low in November, while SGX prices are up more than 3% this month, propped up by China’s easing of pandemic controls and policy support for its economy.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

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....

CMA CGM Profit Eases as Container Transport Demand Wanes

CMA CGM expects its profit to ease further for the rest of the year after a first-quarter decline, as an uncertain economy and influx...

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

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...

Baltic index hits over 3-month low amid lower coal imports

The Baltic exchange’s main sea freight index extended losses for the 15th session straight...

Baltic index falls for the month as vessel demand wanes

The Baltic exchange’s main sea freight index recorded its first monthly decline in four...

North Korea missile tests endanger shipping, UN maritime agency told

North Korean missile tests are endangering the safety of commercial shipping in busy sea...

Singapore Clamps Down on Tankers as Dark Fleet Grows

Singapore’s detentions of oil and chemicals tankers have surged since early last year, highlighting...

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...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...