Saturday, September 23, 2023
HomeHeadlinesIron ore extends rally on China demand optimism

Subscribe

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

Iron ore extends rally on China demand optimism

Iron ore futures extended gains on Wednesday, with prices in China surging more than 5%, as optimism grew about demand prospects in the world’s top steel producer driven partly by supportive policy measures.

A lack of clear and fresh directives from Chinese authorities for steel mills to curb production and limit this year’s output at 2022 levels, as well as reduced scrap steel supply and low inventories, also underpinned prices of the steelmaking ingredient.

The most-traded January iron ore on China’s Dalian Commodity Exchange DCIOcv1 ended daytime trade 3.7% higher at 817 yuan ($112.13) per metric ton, stretching its gains in a 10-session rally to about 14%. It climbed 5.6% earlier in the day.

On the Singapore Exchange, iron ore’s benchmark September contract SZZFU3 was up 2.1% at $112.95 per ton, as of 0712 GMT, after hitting $113.90, its highest since July 26.

Other steelmaking ingredients also advanced, with coking coal DJMcv1 and coke DCJcv1 on the Dalian exchange gaining 4.1% and 2.9%, respectively.

China’s continued policy support for its sputtering economy and current demand and supply fundamentals fuelled the broad-based ferrous market rally, analysts said.

“The market is also buoyed by the absence of government directives to cut steel production,” ANZ commodity strategists said in a note.

China produced 626.51 million tons of crude steel in January-July, up 2.5% from the same period the year before. The earlier expectation was that Beijing would continue to cap steel output this year to limit carbon emissions.

“Affected by the reduction in scrap steel supply, iron ore supply and demand continue to be tight, and the inventory at various links is at a low level,” Huatai Futures analysts said in a note.

Steel benchmarks in Shanghai were also firmer, with rebar SRBcv1 up by 1%, hot-rolled coil SHHCcv1 by 1.2%, and wire rod SWRcv1 by 2.5%. Stainless steel SHSScv1 shed 0.2%.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

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...

Korea’s STX denies rumor that it is backed by Chinese fund

South Korean general trading company STX Corp. has said its largest shareholder is a local investment firm, while refuting the false reports appearing through...

Navios Holdings Announces Receipt of Buyout Offer

Navios Holdings announced that its board of directors received an unsolicited non-binding proposal from N Shipmanagement Acquisition Corp. (“NSC”) to acquire all of the...

Baltic index snaps 11-session rally as rates for larger vessels ease

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index rises for 11th straight session on strong vessel rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

The elite of the Shipping Industry meets at the “Maritime Cyprus 2023” Conference

The main theme of this year’s Conference is “Shipping in Action: An agenda for...

Maritime industry explores nuclear power for ships as technology opens up

The maritime industry is exploring whether nuclear fuel can be used to power commercial...

Baltic index logs best day in almost two months on capesize demand

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

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...

Thessaloniki, Gdańsk ports to explore synergies

Thessaloniki Port Authority S.A is expanding its role as a port of international importance through a new cooperation with the Port of Gdańsk Authority...

Hapag-Lloyd CEO: Counteroffer for HHLA would not be in our interest

Hapag-Lloyd CEO Rolf Habben Jansen said on Thursday that it would not be in the container shipper’s interest to make an offer for HHLA...

MSC offers to buy stake in Hamburg port operator

MSC, the world’s biggest container shipping company, is offering to buy almost half of the main operator of Hamburg port, in a deal that...