Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

China iron ore, steel prices hit record as supply worries prompt speculative buying

05/10/2021 | 12:01am EDT

* Dalian iron ore futures rise 10%

* Prices of steel rebar, hot rolled coils gain 6%

* Iron ore trading departs from fundamentals - analyst

BEIJING, May 10 (Reuters) - China's benchmark iron ore futures surged 10% to a record high, while steel prices rose 6% to hit a trading limit, as Beijing's move to limit capacity fuelled worries about a supply shortage and prompted speculative buying.

China announced a series of measures on Friday to tighten controls on steel capacity, in an effort to curb pollution in key areas as well as reduce "blind investments and disorderly constructions".

The most active iron ore futures contract on the Dalian Commodity Exchange, for September delivery, soared to an all-time high of 1,326 yuan ($206.20) per tonne.

"The surge of iron ore and steel prices were mostly boosted by speculative trading," Tianfeng Futures analyst Wu Shiping said.

While some steel mills have stopped buying materials at such high prices, traders are sweeping goods at spot market, Wu added.

Spot prices of iron ore with 62% iron content for delivery to China stood at $212 per tonne on Friday, data compiled by SteelHome consultancy showed. <SH-CCN-IRNOR62>

On the Singapore Exchange, the June contract of iron ore leaped 10.3% to $226.25 a tonne.

"At present, market participants are trading iron ore derivatives like cryptocurrency ... not based on fundamentals, just pure momentum," Navigate Commodities Managing Director Atilla Widnell said.

Other steelmaking ingredients on the Dalian bourse also increased, with coking coal up 7% at 2,043 yuan a tonne as of 0251 GMT and coke rising 5.5% to 2,987 yuan.

Steel prices on the Shanghai Futures Exchange jumped, mirroring gains in the spot market.

Both, construction rebar and hot rolled coils hit the upper limit at 6,012 yuan and 6,335 yuan, respectively.

Shanghai stainless steel futures, for June delivery, gained 3.3% to 15,390 yuan per tonne.

($1 = 6.4307 Chinese yuan renminbi) (Reporting by Min Zhang and Shivani Singh; Editing by Anil D'Silva)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
SINGAPORE EXCHANGE LIMITED 1.10% 11 End-of-day quote.18.53%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.11% 6.4632 Delayed Quote.-0.60%
Latest news "Economy & Forex"
03:38pWilliams says fed needs to think about what is missing after fednow and other innovations are out there
RE
03:38pWilliams says fed is still in exploratory phase and trying to understand potential uses of a central bank digital currency
RE
03:37p'I REGRET ANY HARM : ' Short seller compensates target in rare move
RE
03:37pWilliams says central bank is focused on fednow real-time payment settlement system
RE
03:35pSoybeans firm on drier long-term Midwest forecast, China demand
RE
03:35pWilliams says there may be more persistent changes in the labor supply including some retirements
RE
03:34pWilliams says he doesn't doubt that economy is going to get to full strength but process could be choppy
RE
03:34pWilliams says more parents will be able to rejoin the labor market as more schools open
RE
03:33pWilliams says there's also some labor supply issues that are hard to quantify, including the extended unemployment benefit program being phased out
RE
03:32pWilliams says the number of people being hired is high but there are also a lot of people changing jobs
RE
Latest news "Economy & Forex"