BEIJING- Benchmark iron ore futures in China surged nearly 4 percent on Friday, erasing most of the week’s losses, as mills ramped up production on better demand hopes and resumption in transportation after lockdowns eased.
Capacity utilization rates of blast furnaces at 247 steel plants across the country were at 86.42 percent this week, data from Mysteel consultancy showed, up from 84.95 percent the week earlier and at the highest since late-July in 2021.
The most-active iron ore futures on the Dalian Commodity Exchange, for September delivery, jumped as much as 3.9 percent to 925 yuan ($145.19) a ton. They were up 2.9 percent to 916 yuan when market closed, logging a 0.3 percent dip for the week.
Spot 62 percent iron ore for delivery to China rose $1 to $153 a ton on Thursday, data compiled by consultancy SteelHome showed.
“Steelmakers are resuming production on expectation of replenishing demand in the downstream sectors,” said ZhuoGuiqiu, analyst with Jinrui Capital.
Dalian coking coal futures gained 2.8 percent to 3,152 yuan a ton and coke prices rose 1.1 percent to 4,217 yuan per ton.
The country’s state planner approved 32 fixed-asset investment projects this year, totaling 520 billion yuan, and is studying plans for new policy reserve to expand investment in the manufacturing sector.
Futures prices for construction material steel rebar on the Shanghai Futures Exchange, for October delivery, ended up 1.3 percent to 5,049 yuan a ton.
Hot rolled coils, used in cars and home appliances, jumped 0.9 percent higher to 5,198 yuan per ton.
Apparent consumption of main steel products including the two materials in China rose 3.5 percent as of Thursday from the week earlier, according to Reuters calculation based on production and inventory data complied by Mysteel.
Shanghai stainless steel futures edged 0.4 percent higher to 19,835 yuan a ton.
