Iron ore rises on pre-holiday restocking, China stimulus hopes
"Winter restocking of iron ore among steel mills is still underway, so we believe ore prices will find some support in the near term," analyst says.
Iron ore prices rose on Friday against a backdrop of strong demand at mills as well as supply tightness.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $216.45 a tonne on Friday, up 1.4% from Thursday’s closing.
The August contract for Shanghai stainless steel futures rose 1.8% to 16,750 yuan per tonne.
“Iron ore and steel prices are once again rising higher … amid strong demand from the Chinese steel industry and supply issues from the largest global producers,” market analyst Fitch Solutions wrote in a note.
However, an improvement in supply and weaker consumption by downstream players at current high prices are expected to cap gains in the coming months, Fitch added.
China Baowu Group, the world’s top steelmaker, on Thursday said it would join forces with Vale and Shandong Xinhai Technology to make stainless steel raw material nickel pig iron (NPI) in Indonesia.
($1 = 6.4512 Chinese yuan renminbi)
(With files from Reuters)
