The fourth iron ore log in successively -according to the weekly profit in the increased steel demand
Futures iron ore is supported on Friday, ending a higher week, supported by strengthening the demand for steel and pre-vacation in China the main consumers.
The most traded January iron ore contract at the China Dalian Commodity Exchange (DCE) rose 0.81% to 807.5 yuan ($ 113.54) per metric ton. The contract ended the week up 0.88%.
Benchmark September Iron Ore (Szzfu5) in Singapore Exchange is 0.27% higher at $ 105.55 per ton at 0716 GMT, although it drops 0.14% for this week.
Steel demand is getting stronger with the beginning of the peak season, and refilling before the Chinese National Day holiday provides continuous support for the iron metal sector. If the downstream demand recovers stronger than expected from the end of September to October, steel prices can see further profits, said the Galaxy Futures broker.
According to data from Mysteel consultation, the stock of China’s main carbon steel products decreased 0.3% during 12-18 September from the previous week to 4.18 million tons.
The average daily hot metal output, an indicator of iron ore demand, reached 2.41 million tons in a week to September 19, up 171,900 tons from the previous year, while the utilization of the capacity of the explosion furnaces rose by 6.29 points of the percentage of years to 90.35%, according to data from Chinese financial information site Hexun Futures.
The top producer of Chinese raw iron ore production rose 8.8% years-to-year in August at 81.63 million tons, while output raw steel dropped for the third month due to slow demand, data from the National Statistics Bureau showed.
Other steel manufacturing materials in DCE get soil, with Coking Coal Nymex: ACT1! and Coke (DCJCV1) each rose 1.36% and 0.75%.
Steel benchmarks in Shanghai Futures Exchange mostly rise. RBF1 REBAR! Get 0.73%, wire rods (SWRCV1) rose 0.09%, and hot-rolled coil EHR1! increased 0.18%, while stainless steel HRC1! down 0.39%.
Source: Reuters
