Iron ore futures continued their upward trajectory on Friday, poised for a weekly increase, buoyed by an optimistic demand forecast from leading consumer China and strengthened fundamentals in the short run.
The most actively traded September contract for iron ore on China’s Dalian Commodity Exchange (DCE) concluded the daytime session with a 3.12% increase, reaching 843.5 yuan ($116.57) per metric ton, marking its highest level since March 26.This marked the fifth consecutive session of gains, resulting in a weekly uptick of 9.3%.
Similarly, the benchmark May iron ore contract on the Singapore Exchange rose by 2.89% to $111.35 per ton, as of 0928 GMT, its highest level since March 11 and a weekly increase of 6.8%.
According to data from consultancy Mysteel, average daily hot metal output increased by 0.5% to 2.25 million tons as of April 12, while iron ore stocks at major ports saw a 0.2% rise to 144.87 million tons.
Analysts at Galaxy Futures anticipate a continuous pickup in hot metal output in the coming weeks, projecting portside ore stocks to decline to approximately 130 million tons in the second quarter.
The faster-than-expected progress in pledged equipment upgrades also boosted sentiment and upheld prices.
Chinese government officials announced strong financing support for companies involved in equipment upgrades and consumer goods trade-ins, aiming to stimulate domestic demand.
China plans to increase equipment investment in key sectors of the economy by 25% between 2023 and 2027, in addition to expediting the recycling of used cars and home appliances.
Customs data revealed a 0.5% year-on-year increase in China’s iron ore imports in March, signaling a demand rebound following the Lunar New Year holiday break, as steelmakers typically ramp up production.
On the DCE, other steelmaking ingredients surged, with coking coal and coke rising by 5.01% and 5.92%, respectively. Steel benchmarks on the Shanghai Futures Exchange mostly saw gains, with rebar up by 0.95%, hot-rolled coil by 0.69%, wire rod by 2.44%, and stainless steel experiencing marginal movement.
To have the best trading experience with us, open an account at Longhorn
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.