STEEL NEWS

Iron ore declines in Dalian, but increases in Singapore

Iron ore futures in Singapore rose for a third straight session on Monday, December 20, amid renewed optimism about steel ingredient demand in the short term, as there are signs that leading steelmaker China has returned to ramp up production in this month.

The most active January iron ore contract on the Singapore Exchange rose 6.7% to $ 127.95 a tonne, the highest level since Oct. 12.

But the most-traded May contract on the China Mercantile Exchange, Dalian, canceled out previous gains and closed 1.3% lower at 673.50 yuan ($ 105.60) a tonne, down from a seven-week high.

Rising stocks of imported iron ore in China, which last week reached their highest level since mid-2018, and steel production restrictions expected to be imposed as China strives for a smog-free sky for the Olympics in Beijing in February, held back investor enthusiasm.

Spot prices for iron ore Fe62% this month rose to $ 120 a tonne on Friday, also a seven-week high, data from consultancy SteelHome showed.

“Analysts expect a rebound in steel production as Beijing's annual targets are met, prompting mills to resume production,” resource sector advisor and broker SP Angel said December 17.

Crude steel production in the first 10 days of December rose 12% from a month earlier, analysts at ANZ said, citing data from the China Iron & Steel Association.

Steel rebar futures on the Shanghai Futures Exchange fell 1% and hot rolled coil fell 1.6%. Stainless steel fell 0.4%.

Dalian coking coal rose in price by 0.7%, and coke - by 2.2%.