Sunday, February 5, 2023
spot_img
HomeHeadlinesIron ore creeps higher on China demand hopes, supply fears

Subscribe

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

Iron ore creeps higher on China demand hopes, supply fears

Dalian iron ore prices rose on Thursday on hopes of robust demand for the steelmaking ingredient in China when steel production curbs are eased after next month’s Beijing Winter Olympics.

Prospects of tight supply also kept a bullish tone intact for iron ore, even as some traders stayed out of the market ahead of next week’s Lunar New Year holidays.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange rose as much as 2% to 781 yuan ($123.07) a tonne, its highest since Oct. 13, before ending daytime trading 0.5% higher at 769 yuan.

Iron ore’s most-active March contract on the Singapore Exchange climbed as much as 1% to $139.05 a tonne.

Demand for iron ore is expected to pick up when traders return from their holidays and further after the Winter Olympics as steel mills are likely to replenish inventories, analysts at Huatai Futures said in a note.

Industrial operations in top steel producer China are expected to be curtailed during the Olympics to ensure smog-free skies.

“After the holiday, (the outlook for) consumption will continue to remain optimistic,” Huatai analysts said. “In terms of supply, due to the recent heavy rains in Brazil and… in Australia, both arrivals and shipments have dropped significantly.”

Spot prices of China-bound iron ore have also rebounded, with the benchmark 62%-grade material climbing to $139 a tonne on Wednesday, the highest since Sept. 3, according to SteelHome consultancy data.

Warnings by major miners Fortescue Metals Group, BHP Group and Rio Tinto of coronavirus-led labour shortages in Australia added fuel to the rally in iron ore prices, that is also underpinned by China’s stepped-up policy easing support for its slowing economy.

Construction steel rebar on the Shanghai Futures Exchange slipped 0.3%, while hot-rolled coil shed 0.2%. Stainless steel SHSScv1 dropped 0.4%.

Dalian coking coal DJMcv1 jumped 3%, but coke fell 0.4%.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

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...