Iron ore prices rise in global markets

Iron ore futures prices rose on Friday, despite minor fluctuations, on expectations that steel mills in China will increase their raw material stocks ahead of the Lunar New Year.

The most traded iron ore contract on China's Dalian Commodity Exchange (DCE) rose 0.52 percent to 780 yuan per tonne by the end of the day. Prices rose 2.6 percent for the week, the biggest weekly rise since late October.

On the other hand, the price of iron ore for January delivery on the Singapore Exchange fell 0.17 percent to $104.7 per tonne. However, prices in this market are also on track to rise 2.7 percent on a weekly basis. At one point in the day, the price reached $105, the highest since November 27.

Analysts said Chinese steel mills are likely to increase their spot iron ore purchases in the coming weeks ahead of the Lunar New Year holiday from February 15-23, providing a supportive environment for prices.

In addition, a shortage of medium-grade iron ore supplies is also supporting prices. The crisis has arisen after mining company BHP banned imports of two grades of ore due to a bargaining dispute.

However, in the short term, the rise in prices is somewhat limited due to reduced iron ore consumption. According to consulting firm Mysteel, average daily hot metal production fell 1.2 percent week-on-week to 2.26 million tonnes as of December 18, the lowest since late January. Steel prices on the Shanghai Futures Exchange were mixed. Rebar prices were unchanged, hot-rolled coils fell 0.24 percent, wire rod rose 0.86 percent and stainless steel prices rose 2.58 percent.

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