China’s benchmark iron ore futures gained for the second straight session on Friday, rising more than 4% following gains in spot market, though demand for the steelmaking ingredient is expected to stay cool amid environment-related curbs.
The most-traded iron ore futures on the Dalian Commodity Exchange DCIOcv1, for January delivery, gained as much as 4.2% to 696 yuan ($107.74) per tonne in morning session. They closed up 2.5% on Friday and gained 8.8% this week.
Spot prices of iron ore with 62% iron content for delivery to China SH-CCN-IRNOR62 increased $4 to $109 per tonne on Thursday, according to SteelHome consultancy.
However, analysts expect the rebound will not last as iron ore demand is still dampened by production cuts at mills.
“Affected by the autumn-winter environmental protection measures and winter Olympic games, domestic iron ore consumption is hard to increase in short term,” analysts with Huatai Futures wrote in a note.
Dalian coking coal futures DJMcv1 fell 6.24% to 2,800 yuan per tonne and coke prices DCJcv1 plunged 7.6% to 3,198 yuan a tonne.
Steel prices on the Shanghai Futures Exchange also declined.
Construction used rebar SRBcv1 slipped 2.8% to 5,468 yuan a tonne.
Hot rolled coils SHHCcv1, used in cars and home appliances, fell 2.9% to 5,511 yuan per tonne.
Stainless steel futures SHSScv1, for October delivery, dived 4.7% to 20,945 yuan a tonne.
Source: Reuters (Reporting by Min Zhang and Shivani Singh; Editing by Rashmi Aich)