Sunday, March 26, 2023
HomeHeadlinesIron ore futures off 1-week high as supply outlook improves


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

Iron ore futures off 1-week high as supply outlook improves

Dalian iron ore rose in a choppy session, while the Singapore benchmark retreated from a one-week high, underlining fragile sentiment as improved supply prospects could add pressure on prices that have collapsed due to weak Chinese demand.

Iron ore’s January 2022 contract on China’s Dalian Commodity Exchange ended daytime trading 1.9% higher at 802.50 yuan ($123.90) a tonne on Wednesday, off a session-high of 829 yuan, its strongest since Aug. 18.

The steelmaking ingredient’s September contract on the Singapore Exchange was down 0.4% at $147.45 a tonne, as of 0713 GMT, after a 9.1% advance in the previous session.

Spot iron ore traded at $147.50 a tonne on Tuesday, bouncing off a more than eight-month low, SteelHome consultancy data showed, as demand concerns somewhat eased.

China’s ongoing steel production restrictions and COVID-19 curbs weighed heavily on iron ore in recent weeks.

Prices have fallen more than 30% from the record peaks in May, and a further drop was possible, according to analysts Erik Hedbord and Richard Lu at commodities consultancy CRU.

“CRU forecasts iron ore prices to decline further towards the end of the year, as we see a more balanced market with Chinese demand likely to stabilise for the rest of the year, while seaborne supply continues to improve,” they said in their latest market insight.

Iron ore producers in Australia, the biggest supplier to top steel producer China, have been struggling to keep production elevated, though the analysts said shipment volumes usually improve in the last quarter.

But they ruled out a price slump below $100 a tonne, citing a still-tight market.

Dalian coking coal DJMcv1 and coke DCJcv1 scaled record peaks for a third day, rising 3.3% and 3.1%, respectively, on supply concerns.

Rebar on the Shanghai Futures Exchange SRBcv1 gained 0.9%, while hot-rolled coil SHHCcv1 added 0.2%. Stainless steel SHSScv1 climbed 1.3%.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Eva Birgitte Bisgaard steps down as chief commercial officer at Maersk Tankers

Eva Birgitte Bisgaard is stepping down from her role as chief commercial officer at Maersk Tankers. Christian M. Ingerslev, chief executive officer of Maersk Tankers,...

Frontline’s Fredriksen appointed to Euronav supervisory board

Belgium’s Euronav said its shareholders had overwhelmingly voted to elect John Fredriksen of peer Frontline, a major investor that pulled out of a merger...

UBS Likely to Shrink Credit Suisse’s $10 Billion Shipping Portfolio – Report

UBS Group AG will likely shrink Credit Suisse Group’s $10 billion shipping portfolio that it inherited as part of its emergency takeover on Sunday,...

Braemar: Record revenue & profitability

Braemar Plc., a provider of expert investment, chartering, and risk management advice to the shipping and energy markets, announced an update on trading...

Oldendorff Carriers announces change of leadership

Effective today, the board of OLDENDORFF CARRIERS has appointed Patrick Hutchins as the new President and CEO of the company. Patrick succeeds Peter Twiss, who...

Global Goods Trade Softening from 2022’s Record Level

International commerce soared to a record of $32 trillion in 2022, but goods trade...

New Hybrid Ferry ‘P&O Pioneer’ Docks At DP World Limassol For Bunkering

P&O Ferries’ newly commissioned Fusion Class vessel ‘P&O Pioneer’ has docked at DP World...

Baltic index gains as capesize rates rebound

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

Minerva puts cost of fuel theft as high as $5.2 bil/year

The bunkering industry is losing as much $5.2 billion of fuel annually to quantity...

Baltic index logs worst day in five weeks on tepid demand for larger vessels

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

Drewry: Port Throughput Index Down 4.5% Year-on-Year

The Drewry Container Port Throughput Indices are a series of calendar adjusted volume growth/decline indices based on monthly throughput data for a sample of...

Port of Los Angeles moves 487,846 container units in February

The Port of Los Angeles processed 487,846 Twenty-Foot Equivalent Units (TEUs) in February, a 43% decrease from the previous February’s all-time record. “February declines were...

Piraeus Port Authority: Strong growth in 2022

PPA S.A. announced Full Year 2022 financial results, marking a consecutive year of growth with a turnover of €194.6 million compared to €154.2 million...

WLP welcomes 14 strategic Vietnamese partners to its growing network of international traders

World Logistics Passport (WLP), a Dubai-led global initiative designed to smooth the flow of world trade, has welcomed 14 Vietnamese partners to its global...

Port of Hedland February Iron Ore Exports 2% Down

Pilbara Ports Authority has delivered a total monthly throughput of 54.8 million tonnes (Mt) for February 2023. This throughput was a five per cent increase...