Iron ore steadies at 5-1/2 month high

Iron ore inventories at China?s main ports hit a two-year low last Friday, falling 2.06 mn tonnes to 73.81 mn tonnes

steadied in thin pre-holiday trade after a three-week rally with cautious over weak demand in China, the world’s top steel and iron ore consumer.

The benchmark index for 62-per cent grade iron ore was $135.4 a tonne last Friday, almost flat with $135.5 a tonne on Thursday, according to the Steel Index. It clung to an almost five-and-a-half month high.

Chinese traders have taken advantage of a rapid rundown at port inventories and an improved expectation on China’s economic growth to drive up prices by about 17 per cent so far this month.

“Steel mills have managed to destock iron ore this year amid uncertainties in prices, but they have done this too much, which triggered more volatilities in the market instead,” said an iron ore trader in Shanghai.

Iron ore inventories at China’s main ports hit a two-year low by last Friday, falling 2.06 million tonnes to 73.81 million tonnes and marking the eighth consecutive weekly decline, according to data from industry consultancy Mysteel.

“The rally in iron ore prices driven by some traders might not be sustainable, as cold weather will continue to hit steel demand, but tight supply and high steel output may support iron ore,” the trader added.

Some traders expected a new round of gains in iron ore prices, as steel mills need to restock before the week-long Lunar New Year in early February.

Steel demand typically declines in northern towards the end of the year, as cold weather hits construction activity, denting consumption of rebar. However, a steep drop in inventories may spark a stronger price recovery when traders start to restock.

The most active rebar futures for May delivery on the traded almost flat at 3,790 yuan ($610) a tonne by midday break today, after posting gains over the past three consecutive weeks.

image
Business Standard
177 22
Business Standard

Iron ore steadies at 5-1/2 month high

Iron ore inventories at China?s main ports hit a two-year low last Friday, falling 2.06 mn tonnes to 73.81 mn tonnes

Reuters  |  Shanghai 



steadied in thin pre-holiday trade after a three-week rally with cautious over weak demand in China, the world’s top steel and iron ore consumer.

The benchmark index for 62-per cent grade iron ore was $135.4 a tonne last Friday, almost flat with $135.5 a tonne on Thursday, according to the Steel Index. It clung to an almost five-and-a-half month high.

Chinese traders have taken advantage of a rapid rundown at port inventories and an improved expectation on China’s economic growth to drive up prices by about 17 per cent so far this month.

“Steel mills have managed to destock iron ore this year amid uncertainties in prices, but they have done this too much, which triggered more volatilities in the market instead,” said an iron ore trader in Shanghai.

Iron ore inventories at China’s main ports hit a two-year low by last Friday, falling 2.06 million tonnes to 73.81 million tonnes and marking the eighth consecutive weekly decline, according to data from industry consultancy Mysteel.

“The rally in iron ore prices driven by some traders might not be sustainable, as cold weather will continue to hit steel demand, but tight supply and high steel output may support iron ore,” the trader added.

Some traders expected a new round of gains in iron ore prices, as steel mills need to restock before the week-long Lunar New Year in early February.

Steel demand typically declines in northern towards the end of the year, as cold weather hits construction activity, denting consumption of rebar. However, a steep drop in inventories may spark a stronger price recovery when traders start to restock.

The most active rebar futures for May delivery on the traded almost flat at 3,790 yuan ($610) a tonne by midday break today, after posting gains over the past three consecutive weeks.

RECOMMENDED FOR YOU

Iron ore steadies at 5-1/2 month high

Iron ore inventories at China?s main ports hit a two-year low last Friday, falling 2.06 mn tonnes to 73.81 mn tonnes

Iron ore steadied in thin pre-holiday trade after a three-week rally with markets cautious over weak steel demand in China, the world’s top steel and iron ore consumer.

steadied in thin pre-holiday trade after a three-week rally with cautious over weak demand in China, the world’s top steel and iron ore consumer.

The benchmark index for 62-per cent grade iron ore was $135.4 a tonne last Friday, almost flat with $135.5 a tonne on Thursday, according to the Steel Index. It clung to an almost five-and-a-half month high.

Chinese traders have taken advantage of a rapid rundown at port inventories and an improved expectation on China’s economic growth to drive up prices by about 17 per cent so far this month.

“Steel mills have managed to destock iron ore this year amid uncertainties in prices, but they have done this too much, which triggered more volatilities in the market instead,” said an iron ore trader in Shanghai.

Iron ore inventories at China’s main ports hit a two-year low by last Friday, falling 2.06 million tonnes to 73.81 million tonnes and marking the eighth consecutive weekly decline, according to data from industry consultancy Mysteel.

“The rally in iron ore prices driven by some traders might not be sustainable, as cold weather will continue to hit steel demand, but tight supply and high steel output may support iron ore,” the trader added.

Some traders expected a new round of gains in iron ore prices, as steel mills need to restock before the week-long Lunar New Year in early February.

Steel demand typically declines in northern towards the end of the year, as cold weather hits construction activity, denting consumption of rebar. However, a steep drop in inventories may spark a stronger price recovery when traders start to restock.

The most active rebar futures for May delivery on the traded almost flat at 3,790 yuan ($610) a tonne by midday break today, after posting gains over the past three consecutive weeks.

image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

STOCK WATCH

Company Price() Chg(%)
Sh.Renuka Sugar 18.00 10.43
L&T Fin.Holdings 84.90 8.29
Jindal Steel 86.20 7.28
T N Newsprint 297.00 6.80
SpiceJet 66.25 6.77
> More on BSE Gainers
Company Price() Chg(%)
Orissa Minerals 2357.15 14.96
Sh.Renuka Sugar 17.95 10.12
L&T Fin.Holdings 85.10 8.55
Jindal Steel 86.20 7.28
T N Newsprint 297.55 6.94
> More on NSE Gainers
Company Price() Chg(%)
Dr Reddy's Labs 3005.80 -9.54
Lycos Internet 12.90 -6.52
JP Power Ven. 6.22 -5.33
M R P L 81.75 -5.16
Dish TV 93.75 -5.02
> More on BSE Gainers
Company Price() Chg(%)
Dr Reddy's Labs 2997.00 -9.72
M R P L 81.75 -5.60
Dish TV 93.70 -5.11
Castex Tech 15.35 -4.95
Cadila Health. 357.35 -4.67
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard