Most ferrous metals and material futures rose on Wednesday, in tandem with Chinese equities, after Beijing signalled that authorities were ramping up efforts to support sagging markets.
The most-traded May iron ore on China’s Dalian Commodity Exchange (DCE) closed up 1.1% at 944 yuan ($131.31) per metric ton, rebounding from the lowest level in more than two weeks hit in the previous session.
The most-active March iron ore contract on the Singapore Exchange was nearly flat at$125.05 a ton, as of 0720 GMT.
“Iron ore posted its first monthly loss in January 2024 since April last year, aided by domestic equity market selloff weighing on market confidence, and a seasonal slowdown ahead of Chinese New Year,” Citi analysts said in a note.
China stocks extended their rally, as investors awaited more powerful market rescue measures.
“China’s policy support has been somewhat underwhelming; however, we see risk skewed to the upside as policy momentum could re-accelerate between now and March National People’s Congress meeting,” the Citi analysts said.
“Meanwhile, iron ore fundamentals could improve post Chinese New Year as mills will resume production supporting iron ore demand.”
Other steel-making ingredients on the DCE were mixed, with coking coal DJMcv1 down 0.3% at 1,700.50 yuan a ton, while coke inched up 0.1% at 2,317.50 yuan.
Steel benchmarks on the Shanghai Futures Exchange were mostly up.
Source: Hellenic Shipping News
