https://newsletter.en.creamermedia.com
Coal|Construction|Iron Ore|Lifting|Stainless Steel|Steel|Products
Coal|Construction|Iron Ore|Lifting|Stainless Steel|Steel|Products
coal|construction|iron-ore|lifting|stainless-steel|steel|products

China steel, iron-ore futures hit record highs on strong demand, supply fears

26th April 2021

By: Reuters

  

Font size: - +

Chinese steel futures closed at all-time highs on Monday, underpinned by robust demand and concerns over production curbs, while benchmark iron ore prices hit record highs, fuelled by structural supply shortage.

The northwest Shaanxi province recently urged local departments, as requested by China's state planner and other authorities, to verify local steelmakers' crude steel output in 2020 and explain those whose production exceeded designated capacity or didn't meet it.

Another major steelmaking city Handan in the Hebei province recently issued a notice, asking mills to implement production-control measures in the second quarter.

The measures have sparked concerns of more curbs in the ferrous sector, lifting prices as demand is still strong during the peak season.

The most-active construction rebar on the Shanghai Futures Exchange, for October delivery, rose as much as 4.3% to 5,475 yuan ($843.63) a tonne. It closed up 2.3% at 5,371 yuan.

Hot-rolled coils, used in cars and home appliances, ended up 3.2% at 5,737 yuan per tonne, after rising as high as 5,795 yuan earlier in the session.

The sky-rocketing steel prices also underpinned steelmaking ingredients.

Iron ore futures on the Dalian Commodity Exchange, for September delivery, closed 4.3% higher at 1,145 yuan. The contract jumped 6.3% earlier.

"Iron ore prices are mainly supported by structural contradiction of supplies, there's shortage in medium and high-grade products," said Zhuo Guiqiu, analyst with Jinrui Capital.

Even the low-grade Super Special Fines with 56.7% iron content is at over 1,200 yuan a tonne, which is more expensive than the most-traded futures contract, Zhuo added.

Spot prices for 62% iron ore rose $0.5 to $187.5 a tonne on Friday, according to SteelHome consultancy.

Dalian coking coal increased 2.3% to 1,789 yuan and coke up 2.9% at 2,679 yuan a tonne.

Shanghai stainless steel, for June delivery, rose 1.9% to 14 190 yuan per tonne. 

Edited by Reuters

Comments

 

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 13 December 2024
Magazine round up | 13 December 2024
13th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.204 0.296s - 193pq - 2rq
Subscribe Now