China Ferrous Metal Futures Rise on Oil Surge, Ambitious Economic Forecast

  • Oil prices hit their highest levels since 2008
  • Benchmark iron ore futures fuel more than 7%
  • Coking coal prices climb up to 12.9%
  • China targets GDP growth of around 5.5% in 2022

March 7 (Reuters) – Chinese ferrous futures rose on Monday, with iron ore hitting a six-month high while other steel ingredients recouped months-long losses as oil prices soared and oil prices surged. Annual economic forecasts for the world’s second-largest economy rose sentiment.

Benchmark iron ore futures on the Dalian Stock Exchange, for delivery in May, ended up 7.1% at 870 yuan ($137.69) a ton, the highest closing price since August 31.

Spot prices for iron ore containing 62% iron for delivery in China rose $5 to $159 a tonne on Friday, according to consultancy SteelHome.

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Coking coal prices rose 8.7 percent to 3,136 yuan a ton as the market closed. They jumped as high as 12.9% earlier in the session. Coke futures on the Dalian Stock Exchange rose 7.2 percent to 3,848 yuan a ton.

“Ferrous 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 rose to their highest level since 2008 on Monday after the United States and its European allies considered an import ban on Russian oil, while delays in the potential return of Iranian crude to world markets fueled fears of tighter supply. Read more

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. Read more

Structural steel rebar on the Shanghai Futures Exchange rose 4.4% to 5,094 yuan a ton and hot-rolled coil gained 2.8% to 5,380 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 for April delivery climbed 10.1% to 20,560 yuan a ton, tracking nickel commodity prices, and posted their biggest percentage rise since 27 September 2019.

($1 = 6.3184 Chinese yuan renminbi)

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Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; edited by Sherry Jacob-Phillips and Jason Neely

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