Iron ore futures post gains on lower shipments and strong steel exports

Iron ore futures rose on Monday, supported by resilient Chinese steel exports and reduced shipments from Brazil.

Market sources said Brazilian iron ore exports fell sharply last week due to scheduled berth maintenance at three major ports. While shipments are expected to recover as maintenance concludes, the short-term drop provided some support to prices. Brazil is the world’s second-largest exporter after Australia.

Stronger steel exports in August also boosted sentiment, partially offsetting weak domestic demand. However, rising protectionist measures could weigh on future shipments.

At the same time, China’s crude steel output has slipped, adding uncertainty to demand. Average daily production at member mills of the China Iron and Steel Association (CISA) dropped 8pct in late August to 1.95 mln tons.

On the Dalian Commodity Exchange, the most-traded January iron ore contract rose 0.64pct to 792 yuan (USD 111) per ton. Coking coal gained 1.42pct to 1,143.5 yuan (USD 160), while coke edged up 0.22pct to 1,620 yuan (USD 227) per ton.

On the Shanghai Futures Exchange, rebar added 0.19pct to 3,132 yuan (USD 439), HRC futures increased 0.96pct to 3,352 yuan (USD 470), and wire rod inched up 0.06pct to 3,292 yuan (USD 461). Stainless steel futures rose 0.62pct to 12,925 yuan (USD 1,812) per ton.

1 USD / 7.13 yuan