China’s iron ore futures recovered early losses to extend gains for a fourth session on Thursday, on renewed demand optimism as steel mills look towards restocking for raw materials.
The most-active iron ore futures contract on the Dalian Commodity Exchange, for January 2020 delivery, closed up 1% at 628 yuan ($88.90) a tonne, its highest since Oct.16.
Other steelmaking ingredients also rose, with Dalian coking coal edging up 0.4% to 1,257 yuan a tonne and coke gained 1% at 1,781 yuan.
“While Tangshan cities are facing production curbs to reduce pollution, other steel plants are reported to increase their production because of attractive profitability,” Argonaut Securities said in a note.
China’s top steelmaking province of Hebei had implemented overnight inspections on illegal industrial works and emissions as an effort to crack down pollution, according to state-backed People’s Daily.
But the anti-pollution plan for this autumn-winter heating season in northern China is still not enough to offset last year’s sharp increase, official data showed.
The most-active construction steel rebar contract on the Shanghai Futures Exchange, for January delivery, inched down 0.2% to 3,318 yuan.
Futures for hot-rolled coil, used in cars and home appliances, rose 1.1% to 3,356 yuan per tonne.
FUNDAMENTALS
* Stainless steel, for February delivery, edged up 0.3% at 15,005 yuan a tonne.
* Prices for spot cargoes of benchmark iron ore with 62% iron content for delivery to China rebounded to $86.5 a tonne on Wednesday.
* China’s imports of semi-finished steel surged in September as a crackdown on scrap shipments saw Chinese buyers scoop up alternative forms of the metal from other Asian countries at favourable prices.
* China’s steel industry expects to face weak demand amid ample supplies in the final quarter of the year, with continued output restrictions and slow industrial activity during the winter heating season, a state newspaper cited participants at an industry conference organised by China Iron and Steel Association.
* China’s ruling Communist Party will hold a key meeting of its senior leadership next week after an unusually long delay since last one, as the country grapples with issues ranging from a slowing economy to unrest in Hong Kong.
Source : https://www.hellenicshippingnews.com