BEIJING- Chinese iron ore futures on Wednesday extended gains for a fourth session, shored up by steelmakers’ enthusiasm to produce more on demand prospects in the world’s top metals consumer and on insufficient inventories at mills due to lean port arrivals.
“Steel mill’s imported ores and sinter inventories fell 12.9 percent as of Nov.4 from pre-October…” Tianfeng Futures wrote in a note, citing data compiled by Mysteel consultancy.
“Current molten iron output is way above same period year ago, mills need to largely restock if they are not cutting production before the Spring Festival holidays,” it added.
Blast furnace’s capacity utilization rates at 163 mills across China dipped to 83.88 percent last week from a week earlier, according to Mysteel data, but compared with a merely 81.93 percent in November last year.
The most actively traded iron ore futures on the Dalian Commodity Exchange, for January delivery, was up 0.6 percent at 835 yuan ($126.53) per ton.