Tuesday, June 6, 2023
HomeHeadlinesIron ore rises on China monetary policy easing prospects


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

Iron ore rises on China monetary policy easing prospects

Dalian and Singapore iron ore futures rose on Monday, on hopes that a monetary policy easing in China could curb the downside risks being faced by the world’s biggest steel producer and consumer, but gains were capped by steel output control fears.

The overall sentiment remained upbeat after state media on Friday quoted Premier Li Keqiang as saying China would cut banks’ reserve requirement ratios in a timely way.

However, a pollution alert in the country’s top steelmaking city of Tangshan, which means production curtailments in the industrial sector including steel and coke, and worries over Chinese property developers’ debt obligations tempered investor optimism.

The most-traded iron ore for May delivery on China’s Dalian Commodity Exchange ended daytime trading 1.6% higher at 615.50 yuan ($96.58) a tonne after rising 4.2% earlier in the session.

The steelmaking ingredient’s January contract on the Singapore Exchange was up 2.1% at $103.70 a tonne by 0732 GMT, off a session high $104.60.

“While we expect Chinese steel output and iron ore demand to contract in 2022, the prospect of easing monetary policy and China’s ‘three red lines’ should soften the slowdown,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.

Dubbed “the three red lines”, Chinese regulators have introduced financial requirements that developers must meet to get new bank loans.

“Market expectations are manifesting that domestic steel production will bolt higher post the Beijing Winter Olympics (in February), when restrictions are likely to be partially lifted,” Widnell said.

Spot iron ore in China traded at $104.50 a tonne on Friday, up from $102 a week earlier, based on SteelHome consultancy data.

Construction steel rebar on the Shanghai Futures Exchange rose 0.7%, while hot-rolled coil SHHCcv1 slipped 0.2%. Stainless steel shed 1.1%.

Dalian coking coal advanced 1.3% and coke climbed 3.1%.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

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...

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...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

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...