On Friday, major Asian iron ore futures rose for the fifth consecutive week. Anti-pollution steel production in China, a major producer, fell, and global steel demand increased, pushing iron ore prices to record highs.
September iron ore futures on China’s Dalian Commodity Exchange closed up 1.2% to 1,104.50 yuan (US$170.11) per ton. The most actively traded contract rose 4.3% this week.
Steel prices on the Shanghai Futures Exchange continued their upward trend, with construction rebar rising 1.7% to 5,299 yuan per ton, only slightly below the record high of 5,300 yuan.
Hot rolled coils used in car bodies and household appliances climbed 0.9% to 5,590 yuan per ton, after hitting a record high of 5,597 yuan.
JP Morgan analysts said in the report: “This is a classic bull market cycle in the steel industry.” “As pre-world China gets rid of the pandemic and responds to stimulus measures, demand is rapidly recovering.”
This is also a good sign for China, which is the world’s largest exporter of steel materials and steel products.
JP Morgan analysts said that discussions about China’s further suppression of steel production also helped Asian steel prices soar, with hot rolled coils soaring to $900 per ton.
The state-supported “China Metallurgical News” reported that following the containment of important steel-making towns like Tangshan, Handan City, Hebei Province will implement production control measures for its steel and coking industries from April 21 to June 30.
Rising steel prices have increased the profit margins of Chinese steel mills, prompting them to increase production and purchase iron ore.
According to data from SteelHome Consulting, China’s spot iron ore traded at US$187 per ton on Thursday, lower than Wednesday’s 10-year high of US$188.50. ‘
BMW (BMWG.DE) reiterated its full-year profit margin outlook on Friday, but said it expects that the rest of the year will remain volatile, and rising raw material costs may hurt future earnings.
According to the South China Morning Post, a Hong Kong court approved the emergency bail of former Democratic Party leader Wu Zhiwei on Friday, who was detained for violating Hong Kong’s national security law so that he could attend his father’s funeral.
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Post time: May-07-2021