Iron ore price rises as output in Chinese steel mills hits highest since October 2020

Iron ore prices rose on Thursday helped by higher hot metal output data in China.

According to Fastmarkets, benchmark 62% Fe fines imported into Northern China rose 1.01% on Thursday, to $119.49 per ton.

The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) ended daytime trading 0.89% higher to 852 yuan ($116.66) a metric ton.

The benchmark October iron ore on the Singapore Exchange was up 0.77% at $117.45 a ton as of 0726 GMT.

Daily hot metal output among the 247 steel mills surveyed climbed by 0.1% on the week to 2.49 million tons as of Sept. 28, the highest level since October 2020, data from consultancy Mysteel showed.

Analysts at the National Australia Bank, however, said in a note that they expected to see downside risk to prices at current levels.

“Prices of raw materials will be under some downward pressure as long as the steel market remains weak,” said Cheng Peng, a Beijing-based analyst at Sinosteel Futures.

Markets in China will be closed for holidays during Sept. 29-Oct. 6.

($1 = 7.3030 Chinese yuan)

(With files from Reuters)