Business Recorder
SINGAPORE: Iron ore futures jumped on Thursday on upbeat China economic data, while falling domestic crude steel output spurred hopes of lifting globally suppressed steel prices and improving Chinese steel mill margins. The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 2.04% higher at 774.5 yuan ($113.60) a metric ton, as of 0243 GMT. The benchmark May iron ore on the Singapore Exchange was 1.09% higher at $105.35 a ton. The Trump administration expressed optimism on Wednesday about reaching a deal to end the war with Iran, while also warning of increasing economic pressure against Tehran if it remains defiant. Hopes of an end to the Iran war spurred positive sentiment for metals markets on Thursday. Meanwhile, China’s economy grew 5.0% in the first quarter from a year earlier, official data showed on Thursday, beating analysts’ expectations as policymakers brace for the fallout from the Iran war. In addition, China’s crude steel output slid 6.3% in March year-on-year to its lowest level for the month since 2020 as margins thinned and exports declined amid the Middle East conflict. The world’s largest steel producer manufactured 87.04 million metric tons of crude steel last month, the National Bureau of Statistics (NBS) said on Thursday. Lower Chinese steel production could lift steel prices globally, as China’s large export volumes have historically suppressed steel prices, which make it harder for steel mills to profit. The country had pledged in March to curb overcapacity in its steel sector. Other steelmaking ingredients on the DCE gained, with coking coal and coke up 0.93% and 1.16%, respectively. Steel benchmarks on the Shanghai Futures Exchange mostly advanced. Rebar gained 0.52%, hot-rolled coil advanced 0.67%, wire rod gained 0.09% while stainless steel fell 0.34%.
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