AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

China's iron ore futures dropped in line with steel rebar futures on Monday, despite the reduction in stockpiles, while concerns over leaner downstream demand weighed on sentiment. The most-active iron ore contract for September delivery on the Dalian Commodity Exchange settled 2.6 percent lower at 438.5 yuan ($69.77) a tonne. Earlier in the session, it hit 435.5 yuan, its lowest since June 26.
Construction steel rebar futures on the Shanghai Futures Exchange ended down 1.9 percent at 3,357 yuan per tonne. Stockpiles of rebar continued to fall last week, dropping by 521,600 tonnes to 8.68 million tonnes. Meanwhile, iron ore inventory at Chinese ports declined by 731,600 tonnes to 160.4 million tonnes compared with a week ago, data from Mysteel Consultancy showed.
"Process of reducing steel products inventory is going on smoothly, which helps to lift sentiment of the market. However, outlook of weak demand in both domestic and overseas market adds pressure on prices," said Zhu Hao, analyst, Orient Futures.
Exports in the world's second-biggest economy unexpectedly fell in March, resulting in a rare trade deficit. Steel exports continued to fall last month, down 25.3 percent to 5.65 million tonnes, customs data showed on Friday, as Beijing curbed production to tackle smog, driving up local prices. On Friday, China's securities regulator disclosed that the country will allow foreign investors to trade in domestic iron ore futures markets starting May 4, latest effort by Beijing to internationalise its commodities market.
"Opening iron ore futures market will lead to limited effect on prices as Dalian's prices have already linked tight with Singapore," said Zhu. "In a short term, the climbing utilisation rates at steel mills are more likely to drive iron ore prices, but will add pressure on steel supply."
The utilisation rate at steel mill blast furnace across China increased by 1.93 percentage points to 66.99 percent last week from prior week, touching the highest since early November, data from the Mysteel showed. Iron ore for delivery to China's Qingdao port rose $0.25 a tonne to $64.96 per tonne on Friday, according to Metal bulletin.

Copyright Reuters, 2018

Comments

Comments are closed.