Benchmark iron ore futures in China rose more than 3% on Tuesday, after five straight sessions of declines fuelled by speculations of a relaxation in steel output controls.
“Affected by the notice of rectifying campaign-style carbon reduction efforts, market expects a slowdown in crude steel output cuts, and iron ore demand may rebound in stages,” SinoSteel Futures said in a note.
Weekly iron ore shipments from Australia and Brazil fell to 24.7 million tonnes as of Aug. 1, down by 147,000 tonnes from a week earlier, data from Mysteel consultancy showed.
The most active iron ore futures on the Dalian Commodity Exchange, for September delivery, increased 2% to 1,063 yuan ($164.41) per tonne at close.
The contract has lost nearly 9% since July 27.
Spot prices of iron ore with 62% iron content for delivery to China inched up $0.5 to $185.5 a tonne on Monday, according to SteelHome consultancy.
Steel prices on the Shanghai Futures Exchange extended losses.
Construction used rebar, for October delivery, slumped 4.6% to 5,247 yuan ($811.51) per tonne, the lowest since July 6.
Hot rolled coils, used in cars and home appliances, plunged 4.9% to 5,608 yuan per tonne.
Shanghai stainless steel futures ended down 4.5% at 18,715 yuan a tonne.
Dalian coking coal fell 2.1% to 2,222 yuan a tonne.
Coke futures on the Dalian bourse dropped 2.5% to 2,821 yuan per tonne.
Source: Reuters
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