Iron ore futures moved upward on the day session, despite an industry event held in Singapore that drew most of the major industry players.
The futures of Dalian Commodity Exchange (DCE) then hiked slightly by 0.91% day-on-day or up RMB 7.50 to RMB 829/mt, during the day trading session on Monday.
The rebar futures also climbed slightly by 0.11% or up RMB 5 day-on-day to RMB 4,650/mt, during the day trading session.
More Chinese government support to kickstart the economy
During the Singapore Iron Ore Forum 2022, spokesman from the China Iron and Steel Association (CISA), suggested that the more government economic support for the Chinese steel production and consumption.
This was after a poor growth in the Q1 2022 as compared to higher growth in previous year period, due to slower growth in property market and impacts of the going Russian-Ukrainian conflict.
According to the country’s National Bureau of Statistics (NBS), China’s fixed asset investment (FAI) increased by 6.8% on year to RMB 15.4 trillion or $2.4 trillion over the Jan-Apr 2022, but the property market declined by 2.7% year-on year to RMB 3.9 trillion.
Lower Australian and Brazilian iron ore shipments recorded in mid-May
Shipments of iron ore from Australia and Brazil had also declined over the May 9-15 period, according to Mysteel.
The data agency noted that iron ore shipments from both countries had decreased for the second consecutive week to 23.7 million mt, down 4% week-on-week or 966,000 mt.
The lower shipment coincided with slow steel demand in China, due to lockdown restrictions and low steel margins. As Chinese mills were heard to preferred to buy from portside, rather than importing seaborne iron ores, as part of their cost saving measures.