AAUKF - Iron ore adds to gains; Chinese output forecast to hit eight-year high

2023-03-30 07:35:55 ET

Iron ore futures appear headed for a fourth straight daily gain Thursday, supported by hopes for demand recovery after steel consumption was temporarily capped by rainy weather in many regions last week.

According to Reuters, the most-traded May iron ore futures contract ( SCO:COM ) on the Dalian Commodity Exchange ended daytime trading +1.9% at 905.5 yuan/ton ($131.64), up 4.8% during the past week.

On the Singapre Exchange, the most-active May iron ore contract +2.2% higher to $125.6/ton, up 7.5% since a week ago.

Potentially relevant tickers include ( NYSE: BHP ), ( RIO ), ( VALE ), ( OTCQX:FSUMF ), ( OTCPK:GLCNF ), ( OTCPK:GLNCY ), ( OTCQX:AAUKF ), ( OTCQX:NGLOY )

Analysts say China's annual iron ore production is poised to hit an eight-year high at 290M metric tons, after the country lifted COVID-19 restrictions and as new capacity came online.

In the short term, analysts warn of possible downside risks as Chinese regulators may intervene to rein in rapid price growth, as they do from time to time .

For further details see: