By Min Zhang and Enrico Dela Cruz
March 7 (Reuters) – Chinese ferrous futures rose on Monday, with iron ore hitting a six-month high while other steelmaking ingredients recovered from multi-month losses, as oil prices surged and the annual economic forecast of the world’s second largest economy boosted morale.
Benchmark iron ore futures on the Dalian Commodity Exchange DCIocv1for May delivery jumped 7.6% to 875 yuan ($138.39) a tonne in early trading, the highest since Aug. 30.
62% iron ore spot price for delivery to China SH-CCN-IRNOR62 rose $5 to $159 a ton on Friday, according to consultancy SteelHome.
Coking coal price DJMcv1 was up 9.2% at 3,151 yuan a tonne, as of 0208 GMT, after climbing 12.9% earlier in the session. Coke futures on the Dalian Stock Exchange DCJcv1 propelled by 5.6% to 3,788 yuan per ton.
“Ferrous metal prices were mainly boosted by the oil market today,” said Wu Shiping, analyst at Tianfeng Futures. “As a major commodity, rising oil prices could be indicative and affect costs across many industries.”
Oil prices hit their highest level since 2008 on Monday after the United States and its European allies consider an import ban on Russian oil as delays in the potential return of Iranian crude to world markets fueled concerns. fears of tighter supply.
China has set its 2022 economic growth target at around 5.5%, slower than last year, as headwinds including an uncertain global recovery and a slowdown in the country’s vast real estate sector have clouded the economy. ‘economy. But the forecast was still seen by analysts as difficult to achieve.
Structural steel rebar on the Shanghai Futures Exchange SRBcv1 rose 4.3% to 5,093 yuan per ton and hot-rolled coils SHHCcv1 gained 3.1% to 5,393 yuan a ton.
“Hot-rolled coil prices in overseas markets are now relatively high and have also pushed up domestic prices,” Wu Shiping added.
Shanghai Stainless Steel Futures SHSScv1 for April, delivery rose 7.6% to 20,105 yuan per ton.
($1 = 6.3225 yuan)
(Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)
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