Despite a bleak economic outlook and geopolitical concerns, iron ore futures rose for a third straight session on Thursday, supported by China’s robust June iron ore import figures and credit expansion.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended daytime trade up 1.6% at 829.0 yuan ($115.68) per metric ton, its highest close since June 30.
On the Singapore Exchange, the benchmark August iron ore was up 0.8% at $109.8 per metric ton, as of 0730 GMT.
China’s June iron ore imports climbed by 7.4%, customs data showed, thanks to solid demand from domestic steelmakers, although the June volume was slightly lower than the 96.18 million metric tons imported in May.
Iron ore prices were also lifted overnight by positive credit data out of China as aggregate financing for June increased, beating market expectations – a positive sign for the property market, National Australia Bank said in a note.
Still, China’s overall exports contracted last month at their fastest pace since the onset of the COVID-19 pandemic three years ago, as an ailing global economy puts mounting pressure on Chinese policymakers for fresh stimulus measures.
Sluggish global economic growth, slowing world trade and investment, and geopolitical risks continue to impact China’s trade, said Lv Daliang, spokesperson of the General Administration of Customs.
Daily crude steel output among member mills of the China Iron and Steel Association (CISA) slumped lower over July 1-10, down 0.3%, or 5,600 metric tons, to 2.24 million metric tons, from 10 days earlier, CISA data showed.
On the Shanghai Futures Exchange, the most actively rebar contract SRBcv1 rose 0.9%, hot-rolled coil SHHCcv1 gained 0.8%, wire rod SWRcv1 gained 0.5%, and stainless steel SHSScv1 gained 0.7%.
Dalian coking coal DJMcv1 and coke DCJcv1 both saw increases of 1.1% and 0.9%, respectively, as steelmaking input prices rose.
