Steel Market Update
Advisory Bazaar Info Services
* Iron ore prices climbed to a one-month high in China, supported by higher freight rates and expectations of restocking demand.
* Iron ore prices on the Dalian Commodity Exchange (DCE) rose 1.52% to 727 yuan ($108.33) per metric ton.
* The benchmark iron ore price on the Singapore Exchange (SGX) gained 1.27% to $100.9 per ton, remaining above the $100 level for the second consecutive session.
* Higher energy prices and escalating U.S.-Iran tensions pushed up freight rates, providing support to iron ore prices.
* Improving expectations for steel demand lifted market sentiment. As of September 4, China’s daily hot-metal output increased 0.1% to 2.37 million tons.
* However, according to Guikui Zuo, an analyst at Jinrui Futures, limited steel mill margins are likely to cap further gains in steel prices.
* Coking coal and coke prices declined 3.41% and 2.97%, respectively, while major steel benchmarks showed a mixed trend.
* Rebar declined 0.47%, hot-rolled coil (HRC) fell 0.44%, wire rod remained unchanged, while stainless steel gained 0.40%.