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Iron Ore Futures

Iron ore futures surge on China steel demand, spot price at 13-month high

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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

China iron ore futures tick higher on supply deficit fears

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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

Dalian iron ends higher as Tangshan lifts smog alert

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By Reporting by Min Zhang and Shivani Singh | Reuters

BEIJING (Reuters) – China’s iron ore futures closed up on Tuesday, shored up by expectations of higher demand after top steelmaking city Tangshan lifted its second-level smog alert.

The most-active iron ore futures on the Dalian Commodity Exchange, for May 2020 delivery, closed up 0.3% at 667 yuan ($96.05) per ton.

Tangshan, which issued an orange alert last week for pollution due to deteriorating weather conditions, said on Monday it will lift its heavy pollution controls as the air quality was expected to improve.

Orange alerts, the second-highest after red in Hebei’s three-tier pollution warning system, require companies to take action to cut emissions and in some cases restrict output, although the province has a “positive list” exempting thousands of firms from production cuts. Full Story