Iron ore futures at DCE climb as China port stocks slip further
Post Date: 06 Aug 2014 Viewed: 865
Reuters reported that China's iron ore futures rose nearly 2% tracking sharp gains in equities and supported by expectations firmer steel prices in the world's biggest consumer would aid demand for the raw material.
Iron ore for January delivery on the Dalian Commodity Exchange closed 1.6% higher at CNY 685 per tonne, recovering from a one week trough of CNY 669 reached earlier.
Iron ore futures in Singapore also advanced, with the August contract on the Singapore Exchange rising 1.3% to USD 96 per tonne and the September contract up 1.2% at USD 95.71.
According to data compiled by Steel Index, Benchmark 62 percent grade iron ore for immediate shipment to China .IO62-CNI=SI dropped 0.4% to USD 95.20 per tonne on Friday.
Stocks of imported iron ore across China's ports fell for a second straight week last week, suggesting firm demand as buyers sought cheap cargoes. According to SteelHome, which tracks data at 44 ports in the country, stocks of imported iron ore in Chinese ports fell by 400,000 tonnes to 111.55 million tonnes as of August 1.
An iron ore trader based in China's eastern Shandong province said that the volume of ready iron ore stock in China's ports has been decreasing and we believe the inventory at mills is also low. On the other hand, prices for steel products are also good and some mills are in profit. He said "I see prices stabilising at around USD 95," said the Shandong-based trader whose company has held on to 300,000 tonnes of iron ore cargoes for a month now, waiting for better price offers from buyers.