Iron ore prices rise in global markets

Iron ore futures prices rose in the international market on Wednesday (March 11) amid the possibility of increased production and the impact of reduced supply. The market is particularly affected by the idea that demand for raw materials may increase in anticipation of a recovery in hot metal production.

The most traded May iron ore contract on China's Dalian Commodity Exchange (DCE) rose 0.96 percent to 788 yuan (about $114.76) per tonne.

On the other hand, the benchmark April iron ore price on the Singapore Exchange rose 0.49 percent to $104.25 per tonne. Analysts say that hot metal production may increase again after the production restrictions imposed on the occasion of the annual parliament session. As a result, the demand for raw materials for steelmaking is likely to increase.

Iron ore concentrate prices are in a strong position due to a supply shortage in Tangshan, China's main iron ore center. At the same time, a recent rise in iron ore futures has created a positive sentiment in the market, a report by Shanghai Metals Market said.

In addition, a decrease in shipments from China's main supplier countries, Australia, Brazil and South Africa, has also provided additional support to prices.

However, a major jump in prices may be limited as record iron ore stocks are in Chinese ports. A BMI report released on Wednesday said that China's crude steel production may fall by about 4 percent as steps are taken to control excess steel production capacity.

The report also said that global steel prices may increase slightly in 2026 if Chinese steel exports decrease. However, overall steel prices in the global market are forecast to remain on a downward trend.

Prices of other steel-making raw materials on the Dalian Commodity Exchange showed a mixed trend. The price of coking coal fell 0.44 percent, while the price of coke rose 0.18 percent.

Meanwhile, most steel benchmarks on the Shanghai Futures Exchange rose. Rebar prices rose 0.16 percent and hot-rolled coil prices rose 0.18 percent. Wire rod prices remained almost unchanged, but stainless steel prices fell 0.81 percent.

The BMI report said that efforts to reduce excess production of hot-rolled coil and rebar have supported prices of these products.