BEIJING: Chinese iron ore futures bounced back on Monday, after two consecutive sessions of losses, jumping more than 5% boosted by positive demand outlook as government said will focus on economic stability next year.
China pledged to continue its prudent monetary policy and proactive fiscal policy, and to prioritise stability in 2022, according to the annual Central Economic Work Conference last week.
“The supply-side of iron ore is not expected to see big change next year, with shipments from mainstream miners to remain stable while output from domestic mines see little change,” said Cheng Peng, analyst with SinoSteel Futures.
“The main factor to affect iron ore prices will be on demand, which is more flexible pending the property market policy.”
Benchmark iron ore futures on the Dalian Commodity Exchange, for May delivery, surged as much as 5.3% to 671 yuan ($105.46) per tonne. They gained 5% to 668 yuan as of 0300 GMT.
Spot prices of iron ore, with 62% iron content for delivery to China, dipped $1 to $108 per tonne on Friday, according to SteelHome consultancy.
Other steelmaking ingredients were traded range-bound as capacity utilisation rates at blast furnaces with 247 mills continued to drop, falling to 74.12% last week from 74.8% the week earlier, data from Mysteel consultancy showed.
Dalian coking coal futures slipped 0.8% to 1,985 yuan a tonne. They plunged 5.9% earlier during the session.
Coke prices on the Dalian bourse inched 0.2% lower to 2,911 yuan per tonne.
Construction used steel rebar on the Shanghai Futures Exchange increased 1.6% to 4,374 yuan a tonne and hot rolled coils, used in cars and home appliances, rose 1.4% to 4,501 yuan per tonne.
Most-traded Shanghai stainless steel futures, for January delivery, faltered 1.2% to 15,685 yuan a tonne.
Source: Brecorder
