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Iron ore records further rises
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Steel gains on signs of growing demand
(Updates prices and added bullet points)
BEIJING, March 30 (Reuters) - Dalian iron ore futures
were set for a fourth straight session of gains on Thursday,
supported by the prospect of demand recovery after steel
consumption was temporarily capped by rainy weather in many
regions last week.
The most-traded May iron ore futures contract on the Dalian
Commodity Exchange (DCE) ended daytime trading 1.91%
higher at 905.5 yuan ($131.64)a tonne, posting a week-on-week
gain of 4.8%.
Similarly, on the Singapore Exchange, the most-active May
iron ore contract was 2.24% higher at $125.6 a tonne as
of 0907 GMT, recording a rise of 7.5% week-on-week.
"Hot metal output still has some room for further growth in
the short run, lending support to the upstream ore market,"
analysts at Huatai Futures said in a note.
Interest in restocking raw materials depends on how steel
demand actually performs and shrinking margins due to falling
prices will cap room for iron ore price gains, they added.
Other steelmaking ingredients-coking coal and coke both
regained lost ground in the afternoon, with the former rising 0.19% and the latter climbing 0.21%.
Steel futures prices were mixed. Rebar on the Shanghai
Futures Exchange rose by 0.53% to 4,167 yuan a tonne,
and hot-rolled coil went up 0.21%. Wire rod declined 0.3% and stainless steel shed 2.5%.
"The market is still holding a strong expectation of
economic recovery," Everbright Futures analysts said in a note.
Despite continued price strength in the iron ore market so
far this week, analysts warned of possible downside risks ahead
as regulators may step out to rein in rapid price growth.
($1 = 6.8787 Chinese yuan)
(Reporting by Amy Lv and Dominique Patton; Editing by Alexander
Smith)
