Iron ore futures rose on Monday, supported by elevated freight rates, while other steelmaking ingredients coking coal and coke also gained as countries booked coal cargoes for their energy requirements due to a spike in global oil and gas prices.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.92 per cent higher at 819 yuan ($118.57) a metric ton.
The benchmark April iron ore on the Singapore Exchange was 0.02 per cent higher at $108.25 a ton, as of 0706 GMT.
Amid the West Asia conflict, iron ore and coke held up well, supported by rising ocean freight rates and transmission from coal-coke energy substitution, a note from Shanghai Metals Market said.
However, market sentiment was cautious while BHP negotiated with state-backed iron ore buyer China Mineral Resources Group, leading to some investors taking profit, the note added.
Iron ore inventory at major Chinese ports fell 0.74 per cent week-on-week, as of March 20, data from consultancy Steelhome showed, as hot metal output picks up.
In Australia, severe tropical cyclone Narelle brushed past the country’s northeast coast, stoking fears of a disruption of supplies from the iron ore hub.
Port Hedland, a primary iron ore hub, is expected to experience strong winds this week, according to Australia’s Bureau of Meteorology.
South Africa has imposed steep import duties on structural steel imports from China after finding evidence of dumping, according to a government notice dated March 19.
Imports make up about 36 per cent of South Africa’s total steel consumption, and China accounts for 73 per cent of that, per the South African Iron and Steel Institute.
DCE coking coal and coke spiked 10.97 per cent and 6.92 per cent, respectively.
Steel benchmarks on Shanghai Futures Exchange gained. Rebar strengthened 0.9 per cent, hot-rolled coil lifted 0.97 per cent, wire rod advanced 1.86 per cent and stainless steel firmed 0.25 per cent.