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BEIJING: Iron ore futures prices recovered on Monday as risk sentiment fueled by Beijing’s latest market surveillance gradually subsided amid improved economic data from the world’s second-largest economy.
January’s most traded iron ore on China’s Dalian Commodity Exchange (DCE) traded 1.86% higher at 847 yuan ($115.68) per tonne as of 02:32 GMT.
The October iron ore benchmark on the Singapore Exchange was 2.18% higher at $115.8 a tonne as of 0236 GMT.
Chinese consumer prices returned to positive territory in August while factory price declines slowed, official data showed on Saturday, as deflationary pressures eased amid signs of stabilization in the economy.
Iron ore prices were supported by stable demand, as reflected in continued high daily production of pig iron.
“The operating rate of the blast furnaces below the factories continued to increase, while there has been no reversal (or reduction) in the daily production of pig iron,” Huatai Futures analysts said in a note.
Daily production of pig iron among the plants surveyed rose 0.53% in the week to 2.48 million tonnes in the week of September 8, the highest since October 2020, data from consultancy Mysteel showed.
Other steelmaking ingredients also advanced, with coking coal and coke rising 2.18% and 0.85% respectively on the DCE.
Some Chinese coking plants proposed an increase in coke prices between 100 and 110 yuan per tonne from Monday, citing rising production costs. Some analysts expect failure in this round of wrestling between coke producers and steel mills.
“We also need to be cautious about any downside risks (to commodities) as long as the steel market remains weak,” he said Cheng Penga Beijing-based analyst at Sinosteel Futures.
Steel benchmarks on the Shanghai Futures Exchange weakened as demand remained weak, despite the fact that the construction season had started in the peak season.
Rebar fell 0.27%, hot rolled coil fell 0.21%, wire rod tumbled 3.09% and stainless steel fell 0.35%.
($1 = 7.3222 Chinese Yuan)
January’s most traded iron ore on China’s Dalian Commodity Exchange (DCE) traded 1.86% higher at 847 yuan ($115.68) per tonne as of 02:32 GMT.
The October iron ore benchmark on the Singapore Exchange was 2.18% higher at $115.8 a tonne as of 0236 GMT.
Chinese consumer prices returned to positive territory in August while factory price declines slowed, official data showed on Saturday, as deflationary pressures eased amid signs of stabilization in the economy.
Iron ore prices were supported by stable demand, as reflected in continued high daily production of pig iron.
“The operating rate of the blast furnaces below the factories continued to increase, while there has been no reversal (or reduction) in the daily production of pig iron,” Huatai Futures analysts said in a note.
Daily production of pig iron among the plants surveyed rose 0.53% in the week to 2.48 million tonnes in the week of September 8, the highest since October 2020, data from consultancy Mysteel showed.
Other steelmaking ingredients also advanced, with coking coal and coke rising 2.18% and 0.85% respectively on the DCE.
Some Chinese coking plants proposed an increase in coke prices between 100 and 110 yuan per tonne from Monday, citing rising production costs. Some analysts expect failure in this round of wrestling between coke producers and steel mills.
“We also need to be cautious about any downside risks (to commodities) as long as the steel market remains weak,” he said Cheng Penga Beijing-based analyst at Sinosteel Futures.
Steel benchmarks on the Shanghai Futures Exchange weakened as demand remained weak, despite the fact that the construction season had started in the peak season.
Rebar fell 0.27%, hot rolled coil fell 0.21%, wire rod tumbled 3.09% and stainless steel fell 0.35%.
($1 = 7.3222 Chinese Yuan)
