BEIJING/MANILA: Benchmark iron ore futures in China surged on Friday, clocking their biggest weekly gain in more than two years at nearly 20% on supply disruption fears over the Russia-Ukraine conflict. The most-traded iron ore futures on the Dalian Commodity Exchange, for May delivery, extended gains into the fifth straight session and ended up 2.8% at 813 yuan ($128.65) per tonne. They were rose as much as 5.7% to 836 yuan earlier in the session.
The benchmark iron ore futures logged weekly gains of 19.4%, the most since the week ended Feb. 21, 2020, recovering losses since Feb.11 when regulators stepped up measures to rein in raw material prices. “Ukraine and Russia are important exporters for iron ingredient in the world uncertainties lie in how long the conflict will last,” GF Futures analysts wrote in a note, adding that iron ore prices are expected to fluctuate in the near term.
Spot 62% iron ore for delivery to China gained $6.5 to $154 a tonne on Thursday, data compiled by SteelHome consultancy showed.
Dalian coking coal futures ended 1.4% higher at 2,869 yuan a tonne and coke prices were up 1.8% at 3,585 yuan per tonne. For the week, prices rose 14% and 13% respectively.
Stainless steel prices on the Shanghai Futures Exchange for April delivery leaped 4.7% to 18,775 yuan a tonne, tracking a 3.5% increase in prices of its raw material nickel as its supply was disrupted due to the Russia-Ukraine conflict. Russia is the world’s major nickel supplier. Trading in other steel products was range-bound during the session. Construction steel rebar inched up 0.3% at 4,901 yuan a tonne, while hot-rolled coils used in the manufacturing sector dipped 0.02% to 5,210 yuan per tonne. Credit Suisse sees global steel demand seasonally will rise into the second quarter on geopolitical events and raw material and energy inflation.
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