📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Dalian iron ore stabilises after rout, China imports rise

Published 13/07/2015, 02:21 pm
© Reuters.  Dalian iron ore stabilises after rout, China imports rise

* China iron ore imports rose 6 pct in June from May

* ANZ sees limited upside in iron ore prices on weak Chinese steel

By Manolo Serapio Jr

MANILA, July 13 (Reuters) - Iron ore futures in China ticked higher on Monday, stabilising after last week's equities-driven rout that pulled prices to a record low.

Aiding sentiment, China's imports of the steelmaking raw material rose 6 percent in June from the previous month, reflecting efforts by big, low-cost miners from Australia and Brazil to boost output and ship more to their top market.

Iron ore for September delivery on the Dalian Commodity Exchange DCIOcv1 was up 0.4 percent at 370.50 yuan ($60) a tonne by midday. The most-traded contract dropped to as low as 333 yuan per tonne on July 9, dragged by steep losses in Chinese equities.

"Iron ore prices dropped too fast last week, but we see that Chinese steel mills' demand for the raw material remains," said a Shanghai-based trader.

China imported 74.96 million tonnes of iron ore in June, up from 70.87 million tonnes in May, government data showed.

Yu Yang, analyst with Shenyin and Wanguo Futures in Shanghai, expects imports to rise further during the current quarter as miners boost shipments in line with increased output. ID:nL3N0ZP3BP

Iron ore for immediate delivery to China's Tianjin port .IO62-CNI=SI climbed 3.3 percent to $49.90 a tonne on Friday, according to The Steel Index, recovering from a decade-low of $44.10 reached earlier in the week.

The spot benchmark still ended last week in the red, albeit trmming its decline to 7.8 percent from nearly 11 percent the week before.

"We view the upside in iron ore prices as limited due to weak demand and weak steel prices," ANZ Bank said in a note.

Shanghai steel futures fell again on Monday after recovering some lost ground following last week's slide to their lowest since their 2009 launch.

The most-active October rebar contract on the Shanghai Futures Exchange SRBcv1 was down 0.7 percent at 2,019 yuan a tonne, after falling as far as 2,000 yuan earlier. ($1 = 6.2082 Chinese yuan)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.