Benchmark iron ore futures in China rose on Friday, posting their biggest weekly gain in more than two years, with a cumulative rise of nearly 20% on fears of supply disruptions related to the conflict. -Ukraine.
The most traded iron ore futures on the Dalian Commodities Exchange for May delivery extended gains for a fifth straight session and ended up 2.8% at 813 yuan ($128.65) a tonne.
They rose as much as 5.7% to 836 yuan earlier in the session.
The product gained 19.4% weekly, the most since the week ended Feb 21, 2020, recouping losses since Feb 11, when regulators stepped up measures to curb raw material prices.
“Ukraine and Russia are important exporters of iron raw materials in the world. Uncertainties surround how long the conflict will last,” analysts at GF Futures wrote in a note, adding that iron ore prices are likely to fluctuate in the short term.
Spot iron ore up 62% for delivery in China gained another $5 to close at $159 a tonne on Friday, data compiled by consultancy SteelHome showed. The physical product is now at its highest value since mid-August 2021.
Dalian metallurgical coal futures ended up 1.4% at RMB 2,869 per tonne, and coke prices rose 1.8% at RMB 3,585 per tonne. For the week, prices rose 14% and 13%, respectively.
Stainless steel prices on the Shanghai Futures Exchange for April delivery jumped 4.7% to RMB 18,775 per tonne, following a 3.5% rise in prices for its nickel raw material as its supply was disrupted due to to the Russia-Ukraine conflict.
Russia is the world’s largest supplier of nickel.
Credit Suisse forecasts that global steel demand will increase seasonally in the second quarter due to geopolitical events and raw materials and energy inflation.
Source: CNN Brasil
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