Iron ore prices jump on forecasts of steel production in China
Iron ore prices rose amid growing hopes for a rebound in steel demand in China. According to Fastmarkets MB, a 62% iron benchmark ore imported into North China changed hands at $ 129.17 a tonne during morning trading, up 3.2% from Monday's close. p>
Dalian Commodity Exchange underlying iron ore futures rose 2.8% to RMB 724 a tonne.
“Domestic stainless steel makers are stepping up maintenance in the first quarter despite being impacted by the Spring and Winter Olympics in Beijing; overall production is expected to be limited, "Jinrui Futures analysts write.
The most actively traded stainless steel contract on the Shanghai Futures Exchange for February delivery jumped 5.3% to 17,920 yuan ($ 2,812.39) a tonne, up 4.4% to 17 760 yuan per ton.
The China Iron and Steel Industry Association said on Monday that crude steel production in China in 2021 is expected to fall to 1.03 billion tonnes from a record 1.065 billion tonnes, reaching "supply and demand balance.
Long-term steelmakers still have room for profit growth, and expectations for a resumption of steel production and restocking ahead of the holidays could support iron ore prices, say analysts at Huatai Futures.