Iron ore futures rise on pre-holiday China demand hopes; inventory build caps gains
Iron ore futures rose on Monday, supported by expectations that Chinese steel mills will increase raw material purchases ahead of the Golden Week holiday, although gains were capped by higher port inventories. The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) climbed 0.63% to 717.5 yuan ($107.16) a metric ton by 0246 GMT. The benchmark October iron ore on the Singapore Exchange was 0.2% higher at $97.4 a ton. Port inventories across 35 major Chinese ports rose 840,000 tons week-on-week to 144.33 million tons, as of September 18.
By Emily Ou Yong SINGAPORE, Sept 21 (Reuters) — Iron ore futures rose on Monday, supported by expectations that Chinese steel mills will increase raw material purchases ahead of the Golden Week holiday, although gains were capped by higher port inventories. 16) a metric ton by 0246 GMT. 4 a ton. Iron ore futures were supported by expectations of increased buying from Chinese steel mills, as demand typically improves ahead of the October holiday, analysts from ANZ Research said in a note.
However, inventory drawdowns have been modest and prices remain at the lower end of their seasonal range, they said. 33 million tons, as of September 18, reversing an earlier destocking trend and weighing on futures, data from Shanghai Metals Market showed. Demand has held broadly steady, while production cutbacks have been gradual despite steel mill margins being squeezed by higher coke costs, said analysts from Shanghai Metals Market. 18%, respectively.
5 million tons are expected to resume production in September and October. That points to a modest recovery in coking coal supply after safety inspections disrupted output following a fatal mine accident in Shanxi in May, analysts from broker Dayue Futures said in a note. Steel benchmarks on the Shanghai Futures Exchange were stronger. 4%.
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