AGL 38.54 Increased By ▲ 0.97 (2.58%)
AIRLINK 129.50 Decreased By ▼ -3.00 (-2.26%)
BOP 5.61 Decreased By ▼ -0.03 (-0.53%)
CNERGY 3.86 Increased By ▲ 0.09 (2.39%)
DCL 8.73 Decreased By ▼ -0.14 (-1.58%)
DFML 41.76 Increased By ▲ 0.76 (1.85%)
DGKC 88.30 Decreased By ▼ -1.86 (-2.06%)
FCCL 35.00 Decreased By ▼ -0.08 (-0.23%)
FFBL 67.35 Increased By ▲ 0.85 (1.28%)
FFL 10.61 Increased By ▲ 0.46 (4.53%)
HUBC 108.76 Increased By ▲ 2.36 (2.22%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.75 Decreased By ▼ -0.11 (-2.26%)
KOSM 6.95 Increased By ▲ 0.10 (1.46%)
MLCF 41.65 Decreased By ▼ -0.15 (-0.36%)
NBP 59.60 Increased By ▲ 1.02 (1.74%)
OGDC 183.00 Increased By ▲ 1.75 (0.97%)
PAEL 26.25 Increased By ▲ 0.55 (2.14%)
PIBTL 5.97 Increased By ▲ 0.14 (2.4%)
PPL 146.70 Decreased By ▼ -1.70 (-1.15%)
PRL 23.61 Increased By ▲ 0.39 (1.68%)
PTC 16.56 Increased By ▲ 1.32 (8.66%)
SEARL 68.30 Decreased By ▼ -0.49 (-0.71%)
TELE 7.23 Decreased By ▼ -0.01 (-0.14%)
TOMCL 35.95 Decreased By ▼ -0.05 (-0.14%)
TPLP 7.85 Increased By ▲ 0.45 (6.08%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.45 Decreased By ▼ -0.40 (-0.79%)
UNITY 26.75 Increased By ▲ 0.35 (1.33%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,806 Increased By 37.8 (0.39%)
BR30 29,678 Increased By 278.1 (0.95%)
KSE100 92,304 Increased By 366.3 (0.4%)
KSE30 28,840 Increased By 96.6 (0.34%)
Markets

Chinese ferrous futures fade on virus concerns, winter restocking

  • Benchmark iron ore futures on the Dalian Commodity Exchange were down 1.6% to 1,031 yuan a tonne.
Published January 12, 2021

BEIJING: Ferrous futures in China declined on Tuesday, with Shanghai steel products down more than 3% in early trade tracking a drop in raw material prices, disrupted by domestic coronavirus situation and the coming restocking plan.

China reported 55 new COVID-19 cases for Jan.11. Hebei has stepped up restrictions to stop further infections, though it also hampered steel mills' outbound transportation.

Meanwhile, the winter restocking for steel products - normally weeks ahead of the Chinese New Year holidays - also disrupted steel prices.

"Considering off-peak season has arrived... market will not accept high profit margins for steel products," analysts with Huatai Futures wrote in a note.

Most active steel rebar contract on the Shanghai Futures Exchange, for May delivery, fell 2.5% to 4,296 yuan ($664.20) a tonne as of 0200 GMT.

Hot rolled coil, used in the manufacturing sector, slipped 2.6% to 4,429 yuan a tonne.

Both contracts fell more than 3% earlier in the session.

Stainless steel futures, for March delivery, dropped 3.3% to 13,735 yuan per tonne. It was down as much as 4.4% earlier in the session.

Prices for steelmaking ingredients also fell.

Benchmark iron ore futures on the Dalian Commodity Exchange were down 1.6% to 1,031 yuan a tonne.

Coking coal fell 2.8% to 1,728 yuan per tonne and coke down 3.9% to 2,756 yuan.

The plunge in coke prices came after market expectations that new coke capacity could be released in the first half of the year to ease supply shortages, said Huatai Futures.

Spot prices of iron ore with 62% iron content for delivery to China fell $1.5 to $171 per tonne on Monday, according to Steel Home consultancy.

Comments

Comments are closed.