Iron ore rallies on hopes
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) was 2.15% higher at 809.5 yuan ($112.78) a metric ton, as of 0250 GMT.
The benchmark August iron ore on the Singapore Exchange was 2.81% higher at $103.6 a ton. China left its benchmark lending rates unchanged, in line with expectations after slightly better-than-expected second-quarter economic data.
Market focus is now on this month's Politburo meeting, which is likely to shape economic policy for the rest of the year, traders and analysts said.
Growing expectations of macroeconomic policy stimulus drove prices of major steel products higher, Mysteel Global said in a note. Improved margins on steel sales also prompted steel mills to increase their blast furnace operations, with the average blast furnace capacity utilisation rate rising by 0.99 percentage points week-on-week during July 11-17, Mysteel said in a separate note.
According to analysts, hot metal output, an indicator of iron ore demand, remained high. Steel exports remained high overall, broker Everbright Futures said in a note.
Elsewhere, iron ore shipments from top producers Australia and Brazil have increased slightly, said broker Hexun Futures. Other steelmaking ingredients on the DCE surged, with coking coal and coke up 4.18% and 2.95%, respectively. Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar and wire rod rose around 2% each, hot-rolled coil climbed 2.26%, and stainless steel edged up 1.45%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
3 hours ago
- Business Recorder
Aussie shares fall as miners, gold stocks weigh; eye worst week since April
Australian shares fell on Friday and were headed for their worst week in 16, dragged down by losses in gold stocks and miners, while markets awaited progress in U.S. trade talks. The S&P/ASX 200 index lost 0.5% to 8,935.1 by 0058 GMT, taking its decline to more than 1% so far this week and putting it on track for its steepest weekly drop since April 4. Miners dragged the index lower, with the sub-index down 1.2% as iron ore prices fell. Rio Tinto and BHP slipped 1% and 1.4%, respectively, while Fortescue, which released key production results this week, was down 1.8%. Whitehaven Coal eased 0.2%, outperforming the broader sub-index after reporting a 9% jump in its fourth-quarter output. Gold stocks fell 0.9%, with Northern Star Resources and Evolution Mining down 1.5% and 1.7%, respectively. Financials shed 0.7%, with the 'Big Four' banks down between 0.3% and 0.9%. Bucking the trend, energy stocks rose 1.1%, as oil prices climbed on hopes of a potential trade deal between the U.S. and the European Union and reports of Russian plans to restrict gasoline exports to most countries. Meanwhile, Australia agreed to open its market to U.S. beef, U.S. President Donald Trump said on Thursday. Reports said Canberra is considering using this easing of rules to wind back the 50% U.S. tariffs on steel and aluminium and fend off threats of a 200% duty on pharmaceuticals. Most Australian exports to the U.S. face a 10% baseline tariff. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.1% to 12,815.76 points.
Business Recorder
4 hours ago
- Business Recorder
Intra-day update: rupee gains ground against US dollar
The Pakistani rupee strengthened against the US dollar, appreciating 0.25% during the opening hours of trading in the inter-bank market on Friday. At 10am, the currency was hovering at 283.50, a gain of Re0.72. On Thursday, the currency settled at 284.22. Globally, the US dollar steadied near two-week lows on Friday, on track for its biggest weekly drop in a month, as investors contended with US tariff negotiations ahead of a deadline while looking ahead to central bank meetings next week for clues on policy. Both the US Federal Reserve and the Bank of Japan are expected to hold rates at next week's policy meetings, but traders are focusing on the subsequent comments to gauge the timing of the next move. The prospect of rate hikes by the BOJ had improved, she added, after a trade deal struck with the United States this week lowered tariffs to 15% on auto imports from Japan. The yen stood at 147.10 to the dollar, on course for a weekly gain of 1%, its strongest such performance since mid-May. The dollar index, which measures the US currency against six other units, was at 97.448, set for a drop of 1% this week, its weakest performance in a month. Oil prices, a key indicator of currency parity, rose on Friday, buoyed by optimism over a potential trade deal between the US and the European Union and reports of Russian plans to restrict gasoline exports to most countries. Brent crude futures gained 17 cents, or 0.3%, to $69.35 a barrel by 0027 GMT. US West Texas Intermediate crude futures climbed 15 cents, or 0.2%, to $66.18 per barrel. Oil settled 1% higher on Thursday, driven by media reports of expected cuts to Russian gasoline exports. This is an intra-day update
Business Recorder
5 hours ago
- Business Recorder
Gold subdued as trade optimism weighs, but soft dollar cap losses
Gold prices edged lower on Friday, as signs of progress in trade negotiations between the U.S. and its trading partners weighed on safe-haven demand, although an overall weaker dollar limited losses for bullion. Spot gold was down 0.1% at $3,363.91 per ounce, as of 0243 GMT. However, bullion has gained 0.4% so far this week. U.S. gold futures fell 0.2% to $3,365.50. 'Basically we are seeing some profit-taking from short-term bullish speculators due to the fact that we now start to see this trade-deal optimism in the market,' OANDA senior market analyst Kelvin Wong said. 'However, the dollar is in a weakening bias and on top of that, we still have the Fed rate cuts pretty much alive at this juncture, which are supporting gold near $3,360 level.' The European Union and the United States now appear to be heading towards a possible trade deal, according to EU diplomats, which would result in a broad 15% tariff on EU goods imported into the U.S., mirroring a framework agreement Washington struck with Japan. The S&P 500 and the Nasdaq notched record closing highs overnight as signs of easing global trade tensions lifted risk sentiment among investors. Offering respite to gold, the U.S. dollar index was headed for its worst week in a month, making greenback-priced gold less expensive for other currency holders. Data showed U.S. jobless claims unexpectedly fell last week, signalling a steady labour market despite sluggish hiring making it harder for the unemployed to find work. The Federal Reserve is also widely expected to leave rates unchanged at its July 29–30 meeting, but markets continue to price in a potential rate cut in September. Spot silver rose 0.2% at $39.14 per ounce and was on track for a weekly gain, up 2.5% for the week. Platinum eased 0.2% to $1,407.10 and palladium climbed 0.9% to $1,238.73.
