China’s iron ore futures rose
for a second straight session on Tuesday amid positive market sentiment
about a swift economic recovery and hopes of further demand after the
rainy season.
The most-traded iron ore futures
on the Dalian Commodity Exchange DCIOcv1, for September delivery, rose
1.7% to 833 yuan (£94.70) per tonne by 0215 GMT.
“The surge in iron ore futures
prices comes as (there are) no significant demand and supply
contradictions,” Huatai Futures wrote in a note.
“It’s more (driven by) market
sentiment and in preparation for the peak season,” it said, adding that
current utilisation rates at blast furnaces remained at high levels.
Spot prices for iron ore with
62% iron content for delivery to China, compiled by SteelHome
consultancy, rose by $2.5 to $109.5 per tonne on Monday from the
previous trading day.
Customs data showed China’s iron
ore imports in January-June rose 9.6% to 547 million tonnes from a year
earlier.
Steel prices on the Shanghai
Futures Exchange were range-bound. The most-traded October contract of
rebar, used in the construction sector, SRBcv1 dipped 0.1% to 3,730 yuan
a tonne and hot-rolled coils SHHCcv1 - materials for the manufacturing
sector - fell 0.2% to 3,735 yuan per tonne.
Stainless steel futures, for
September delivery SHSScv1, inched up 0.2% to 13,610 yuan a tonne.
Source: Reuters |