Saturday, September 30, 2023
HomeHeadlinesIron ore, steel prices dip on fragile China demand recovery


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

Iron ore, steel prices dip on fragile China demand recovery

Chinese ferrous futures fell on Monday, as mounting steel stocks and rising portside iron ore inventory indicated a slow recovery in demand, even as latest indicators pointed to a rebounding economy.

The most-traded May iron ore on China’s Dalian Commodity Exchange DCIOcv1 ended daytime trade 2.2% lower at 841.50 yuan ($123.23) a tonne.

On the Singapore Exchange, the steelmaking ingredient’s benchmark March contract SZZFH3 was down 3.5% at $120.35 a tonne, as of 0702 GMT.

On the Shanghai Futures Exchange, rebar SRBcv1 shed 1.6%, while other steel benchmarks also dropped. Hot-rolled coil SHHCcv1 dipped 1.4%, wire rod SWRcv1 lost 1.7%, and stainless steel SHSScv1 slipped 0.5%.

“Industrial metals markets will need to wait for February and March economic data to get a true sense on the health of the Chinese economy,” Navigate Commodities Managing Director Atilla Widnell said.

Traders were cautious despite data showing new bank loans in China jumped more than expected to a record 4.9 trillion yuan ($717.21 billion) in January, while new home sales in 16 Chinese cities rose for the second straight week.

“The profits of steel mills have not improved,” Huatai Futures analysts said in a note. “The continuous increase in inventory will cause short-term adjustments in finished product prices.”

Steel inventories held by Chinese traders, which have been steadily rising since late December, increased by 1.5 million tonnes over Feb. 3-9, according to Mysteel consultancy’s latest stocks survey.

Meanwhile, portside iron ore inventory climbed last week to 138.5 million tonnes, the highest since mid-September, SteelHome consultancy data showed.

Other Dalian steelmaking inputs were also weaker, with coking coal DJMcv1 down 2.9%, while coke DCJcv1 dropped 2.7%.

“Higher-frequency construction steel trading volumes alluded to emerging shoots of a fragile recovery in steel demand last week,” Widnell said.

“If this trend extends for a second consecutive week, this could also reignite the optimism around the reopening narrative.”

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Sphinx Investment Corp Increases Stake in OceanPal

On September 28, 2023, an OceanPal SEC filing revealed that Sphinx Investment Corp. had raised its ownership in OceanPal, now holding a substantial stake...

Star Bulk Announces the Repurchase of 10 Million of Its Common Shares

Star Bulk announced that it entered into a Repurchase Agreement (with OCM XL Holdings, LP, a limited partnership incorporated in the Cayman Islands, pursuant...

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...

Baltic index snaps 4-day winning streak as capesize rates slip

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

Baltic index scales 11-month peak on strong capesize rates

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

Baltic index scales over 9-month high on capesize surge

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

Baltic index rises to over 4-month high on stronger capesize rates

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

Houston-Japan VLGC freight rates reach multi-year high

VLGC freight rates from Houston to Chiba, Japan, reached $245/mt Sept. 21 for the...

Piraeus Port reports strong H1 2023 results

The Piraeus Port Authority SA, which operates Greece’s biggest and busiest port, reported a 48.8-percent increase in pre-tax earnings for H1 2023 – 49.4...

Greece names Thessaloniki port operator preferred bidder for Volos port

Greece’s privatisation agency has named the operator of Thessaloniki port as the preferred bidder for acquiring a 67% stake in the port of Volos,...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

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...