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Blast furnace capacity utilisation rate in China rises
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China's strong February credit growth supports recovery
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Chinese regulators may take steps to curb iron ore prices
(Updates prices, adds more analyst comment)
By Enrico Dela Cruz
March 13 (Reuters - Iron ore futures climbed on Monday,
with the Singapore benchmark rising back above $130 a tonne, as
improving profitability of steel mills and demand outlook in top
steel producer China lifted sentiment, although regulatory
concerns capped gains.
The most-traded May iron ore on China's Dalian Commodity
Exchange ended daytime trade 0.5% higher at 929 yuan
($134.63) a tonne, after posting its fifth consecutive weekly
gain on Friday.
On the Singapore Exchange, iron ore's benchmark April
contract was up 2.5% at $132 a tonne, as of 0730 GMT,
hitting its highest since Feb. 21.
The rapid rise in steel mills' profits and their output
expansion have boosted iron ore demand, Sinosteel Futures
analysts said in a note.
According to industry data and consultancy provider
Mysteel's latest survey of 247 Chinese steel mills, the overall
blast furnace capacity utilisation rate edged up for the ninth
straight week, rising another 0.89 percentage point on week to
88.03% over March 3-9.
Chinese steelmakers have resumed operations after regular
maintenance works or ramped up production amid improving margins
and brightening outlook for the domestic economy.
"It's a relatively heavy week of economic data releases in
China, which we believe should corroborate the country's
economic recovery in February," Navigate Commodities Managing
Director Atilla Widnell said.
China is scheduled to release this week a raft of data,
including industrial production. It reported unexpectedly strong
credit growth for February.
Chinese regulators, however, may take steps to curb surging
iron ore prices, after the state planner suggested authorities
should strengthen market supervision and crack down on
misleading pricing information and hoarding.
Both rebar and hot-rolled coil on the
Shanghai Futures Exchange climbed 1%. Wire rod was
flat, while stainless steel dipped 0.5%.
On the Dalian exchange, coking coal and coke gained 1.7% and 0.7%, respectively.
(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)
