Iron ore price up as China steel futures rise

Steelmaking. (Image by 綾小路 葵, Flickr)

Iron ore prices rose again on Tuesday following the steel price increase.

The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) dropped in the morning but gained in the afternoon before closing up by 0.5% from Monday’s close of 1,225 yuan ($189) per tonne.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $222.36 a tonne on Tuesday, up 0.3% from Monday’s closing.

The August contract for stainless steel on the Shanghai bourse was up 2.2% at 16,880 yuan a tonne.

“Futures are stronger than spot prices as currently market has a relatively strong expectation on production restrictions,” GF Futures wrote in a note.

“Considering spot prices are supported by costs… (steel) will remain fluctuating at high levels,” GF added.

(With files from Reuters)