Iron ore futures in China jumped more than 5% on Wednesday (11), after falling for three consecutive sessions, as hopes of recovery in demand at mills rose even with the lockdowns against Covid-19. in the country, interrupting economic activity.
The most active iron ore futures on the Dalian Commodities Exchange for September delivery rose as much as 6.6% to 831 yuan ($123.72) a tonne – the biggest percentage gain since March 7. The contract closed up 5.3% at 821 yuan a tonne.
On the Singapore exchange, June’s most-traded iron ore contract gained 4.3% to $131.85 a tonne.
“The impact (of the pandemic) in areas such as Tangshan is waning, and the transport of raw materials has resumed,” analysts at Haitong Futures said in a note, adding that daily cast iron production had recovered from previous weeks.
However, mill profits are relatively low and steel production controls could still weigh on mill utilization rates, the note said.
Coking coal prices on the Dalian Exchange ended Wednesday’s session up 2% to RMB 2,663 per tonne, and coke futures rose 2.3% to RMB 3,418 per tonne.
The jump in raw material prices also boosted steel products on the Shanghai Futures Exchange.
Steel rebar for construction material for October delivery rose 2% to RMB 4,681 per tonne. Hot-rolled coils, used in the manufacturing sector, rose 1.9% to RMB 4,775 per tonne.
Source: CNN Brasil
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