China’s iron ore, steel futures surged on Tuesday 

 

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China’s most-traded iron ore futures contract on the Dalian Commodity Exchange, for September delivery, surged 4.1% to close at 824 yuan per tonne. 

The most-traded hot-rolled coil and steel rebar gained 2.4% and 2.08%, respectively, to close at 3,835 yuan per tonne and 3,728 yuan per tonne. 

Overseas supply shipments of iron ore are currently at a mid-year high level, with arrivals also increasing, and on the demand side, iron production continued to increase to a high level, which provides support for iron ore, China Everbright Futures said in a note. 

Steel mills’ iron ore inventory remains at a low level, with some mills having need to restocking on a small scale, and Under the intertwined, iron ore prices are expected to continue the high level of oscillation trend, it said, adding that iron ore pries are expected to fluctuate at a high level.