Iron ore markets are winding down ahead of Lunar New Year celebrations

YOSHIKAZU TSUNO/AFP/Getty Images
  • Iron ore markets look like they’re already winding down ahead of Lunar New Year holidays.
  • Minimal movements were seen in spot and futures markets on Tuesday.
  • Chinese markets will be closed from February 4 to 10.

Iron ore markets are already winding down ahead of Lunar New Year Celebrations with minimal movements seen in spot and futures markets on Thursday.

According to Metal Bulletin, the spot price for benchmark 62% fines rose 0.3% to $74.71 a tonne, bouncing modestly after two days of declines.

58% fines added 0.2% to $53.02 a tonne while 65% fines rose by a larger 0.6% to $89.20 a tonne.

The modest movements in physical markets mirrored similar price action in Chinese steel and iron ore futures.

“The market has gradually entered holiday season… there is not much tension expected at the moment as investors are waiting for a clearer situation after the holiday,” analysts from CITIC Futures said in a note.

Lunar New Year celebrations in China will run between February 4 to 10.

Rebar and hot-rolled coil futures in Shanghai closed at 3,680 and 3,590 yuan respectively, up marginally from Wednesday evening.

Bulk commodity contracts traded separately in Dalian were mixed with iron ore futures inching higher, closing at 535.5 yuan, while coking coal and coke futures eased to finish at 1,216 and 2,034.50 yuan respectively.

However, all five contracts rose during Thursday’s night session, as seen in the closing scoreboard below.

SHFE Hot Rolled Coil ¥3,626 , 1.43%
SHFE Rebar ¥3,703 , 1.17%
DCE Iron Ore ¥535.50 , 0.56%
DCE Coking Coal ¥1,224.00 , -0.16%
DCE Coke ¥2,050.50 , 0.47%

The modest gains suggest physical markets may start on a firmer footing on Friday.

Trade in Chinese commodity futures will resume at midday AEDT.

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