Iron Ore Futures

By Enrico Dela Cruz | Reuters

Iron ore futures firmed on Tuesday, with both Dalian and Singapore benchmark contracts gaining more than $3 on expectations that steel usage in China would remain robust in the coming months and offset sluggish demand overseas.

The Dalian Commodity Exchange’s most-traded iron ore for delivery in January 2021 closed the session 3.5% higher at 863 yuan ($124.51) a tonne, rising for a fourth session in a row.

Iron ore’s front-month September contract on the Singapore Exchange climbed 3% to $120.42 a tonne in afternoon trade, extending gains into a third straight session.

“Market participants are looking forward to a strong second half for Chinese steel demand which should maintain steel and iron ore prices above previous expectations,” said Justin Smirk, senior economist at Westpac Economic Research…Full Story

By Enrico Dela Cruz

Chinese iron ore futures edged higher on Thursday on supply concerns as coronavirus containment measures across the world intensified, but clouded demand outlook for the steelmaking raw material and steel products capped gains.

The most-traded May iron ore contract on the Dalian Commodity Exchange ended the morning session up 0.2% at 658.50 yuan ($92.67) a tonne. The front-month April contract on the Singapore Exchange, however, fell as much as 1.9%.

Supply concerns also supported spot prices. The benchmark 62% iron ore bound for China, the biggest buyer of the raw material and which accounts for more than half of the world’s steel output, was well above $80 a tonne.

“Prices (are) trading above US$80/T level, comfortably supported by expectations of a potential supply deficit in 2020 as many major producing countries announce complete lockdowns,” commodity strategists at ING wrote in a note…Full Story