Business Recorder
SINGAPORE: Dalian iron ore futures rose for a second straight session on Thursday, as upbeat China factory activity data raised demand prospects in the world’s second-largest economy. The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) was 0.51% higher at 787.5 yuan ($115.15) a metric ton, as of 0222 GMT. The contract has gained 0.19% so far this week. Markets in China will be closed from May 1 to 5 for holidays. The benchmark June iron ore on the Singapore Exchange was 0.06% lower at $106.35 a ton. The contract has gained 0.37% so far this week. China’s factory activity expanded for a second straight month in April on firmer output and stockpiling activity, an official survey showed, suggesting that growth momentum held despite external shocks stemming from the Middle East war. The official manufacturing purchasing managers’ index (PMI) dipped to 50.3 from 50.4 in March, but kept above the 50-mark separating growth from contraction, according to a survey by the National Bureau of Statistics (NBS). It beat a median forecast of 50.1 in a Reuters poll. The survey, which follows better-than-expected first-quarter growth, showed the resilience of the Chinese economy, but prolonged inflationary pressures could also weigh on external demand, which the country relies on to offset tepid domestic consumption. In company news, Baoshan Iron & Steel Co, China’s biggest listed steelmaker, reported an 8.6% annual fall in its first-quarter net profit on Wednesday, hit by higher costs for feedstocks related to the Iran war. Steel prices fell 4.4% in the first quarter, while iron ore prices jumped 3.2%, squeezing margins, according to Baosteel, a subsidiary of state-owned China Baowu Steel Group, the world’s largest steelmaker by output. Other steelmaking ingredients on the DCE firmed, with coking coal and coke up 0.91% and 0.69%, respectively. Most steel benchmarks on the Shanghai Futures Exchange gained. Rebar advanced 0.57%, hot-rolled coil gained 0.59% and stainless steel climbed 0.97%, while wire rod shed 1.01%.
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