“As Tangshan resumed production, short-term demand will return to pre-centenary level,” analysts at SinoSteel Futures wrote in a note, adding that overall demand was still weakened by steel cut policies.
The most-traded iron ore futures on the Dalian Commodity Exchange, for September delivery, soared as much as 5.6% to 1,226 yuan ($189.80) per tonne, the highest level since June 11. They closed up 5.5% at 1,225 yuan.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $221.82 a tonne on Monday, up 1.8% from Friday’s closing.
Steel supply is facing increasing pressure recently as some areas have stepped up output-cut plans while some mills are facing losses, analysts at Haitong Futures said in a note.
“However, current demand is obviously at off-peak season… (we) expect steel prices will remain range-bound fluctuations,” they added.
(With files from Reuters)
