- Iron ore spot markets are quiet.
- Chinese steel futures continued to push higher, supported by restocking ahead of the Spring construction season.
Iron ore spot markets had a quiet start to the week with minimal movements recorded across all major grades.
According to Metal Bulletin, the price for benchmark 62% fines rose by 0.2% to $88.32 a tonne, completely reversing the weakness seen a session earlier.
65% fines also inched higher, closing up 0.3% to $100.80 a tonne.
58% fines bucked the trend, settling down three cents at $69.65 a tonne. It has now fallen for four consecutive sessions having soared to multi-year highs in early February.
The movements in spot markets were replicated in Chinese steel and bulk commodity futures on Monday.
Rebar futures closed at 3,659 yuan, almost identical to where it finished trade on Friday evening. Hot-rolled coil futures fared a little better, lifting to 3,624 yuan, up from Friday’s night session close of 3,601 yuan.
Despite the flat to higher movements in steel futures, bulk commodity contracts traded separately in Dalian went backwards.
Iron ore, coking coal and coke futures finished the session at 628, 1,258.50 and 2,068 yuan respectively, down from 638.50, 1,286.50 and 2,083.50 yuan on Friday evening.
The May 2019 iron ore contract briefly hit a session high of 641.50 yuan before giving back ground towards the close. In early February the contract rose to 657.5 yuan, the highest level on record, according to Reuters.
Continuing the price action seen during the day session, all five contracts finished mixed in overnight trade on Monday.
SHFE Hot Rolled Coil ¥3,671 , 2.06%
SHFE Rebar ¥3,691 , 1.26%
DCE Iron Ore ¥635.50 , 0.71%
DCE Coking Coal ¥1,257.00 , -0.98%
DCE Coke ¥2,072.00 , 0.24%
Rebar, hot-rolled coil and iron ore futures climbed while coking coal and coke lagged the broader move.
Trade in Chinese commodity futures will resume at midday AEDT.
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