Prices of steelmaking ingredients rise on strong demand

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    Futures prices of steelmaking ingredients in China rose on Monday, with iron ore jumping more than 4 percent and coke scaling a 12-month high, on strong demand as the world’s top steel producer continues to ramp up output.

    The most-traded iron ore contract for September delivery on China’s Dalian Commodity Exchange rose as much as 4.3 percent to 873.50 yuan ($125.24) a ton in early trade.

    Iron ore’s September contract on the Singapore Exchange climbed 2 percent to $108.08 a ton.

    Dalian coke for September delivery gained 3 percent to 2,032 yuan a ton, the highest since July 29 last year.

    “The average daily molten iron output of steel mills reached a new high, reaching 2.5 million tons, mainly due to the recent resumption of production of blast furnaces in some areas,” analysts at Sinosteel Futures Co Ltd in Beijing said in a note.

    Chinese steel mills remain profitable despite higher costs of raw materials, encouraging them to keep blast furnaces running at increased rates, they said, adding that they saw “strong support” for coke, which is used in iron ore smelting. – Reuters