📌 Steel Market Update
Advisory Bazaar Info Services
Sentiment strengthened due to China’s fiscal support pledges and a sharp rise in nickel prices, leading to gains in iron ore prices.
â–ª Iron ore futures rose on expectations of monetary support in China aimed at boosting consumption.
â–ª On the Dalian Commodity Exchange, the May iron ore contract increased by 0.33% to 766 yuan ($110.98) per metric ton.
â–ª On the Singapore Exchange, benchmark March iron ore climbed 0.25% to $100.2 per ton.
â–ª Investor sentiment improved as the central bank committed to stimulating domestic demand amid concerns over industrial overcapacity.
â–ª The rally in nickel prices also provided positive support to the outlook for iron ore and other metals.
â–ª China’s car sales fell 19.5% in January, marking the steepest decline in nearly two years amid rising competition.
â–ª Steel demand is shifting from the construction sector toward manufacturing, where automobile and appliance production are showing notable growth.
â–ª By 2025, manufacturing is expected to account for about 53% of China’s total steel consumption, while construction’s share may be around 36%.
â–ª Other steelmaking raw materials showed mixed trends—coking coal rose 0.27%, while coke declined 0.18%.
â–ª On the Shanghai Futures Exchange, steel benchmarks were mixed—rebar slipped 0.03%, whereas wire rod gained 0.32%.