Chinese steel futures also closed at a record high, supported by robust demand and concerns about production constraints
Iron ore prices soared to new highs on Monday, bolstered by structural contradictory inventories and a shortage of medium and high-quality products, Jinrui Capital analyst Zhuo Guiqiu told Reuters.
Even the low-grade Super Special Fines with an iron content of 56.7% are over 1,200 yuan per ton, which is more expensive than the most traded futures contract, ”added Zhuo.
Iron ore futures on the Dalian Commodity Exchange, for delivery in September, closed 4.3% higher at 1,145 yuan. The contract previously jumped 6.3%.
According to Fastmarkets MB, Benchmark 62% Fe Fines Imported into Northern China (CFR Qingdao) changed at $ 193.58 per ton on Tuesday, up 3.93% from Friday trade.
The high-quality Brazilian index (65% Fe fines) also hit a record high of $ 226.90 per ton.
Chinese steel futures also closed at a record high, supported by robust demand and concerns about production constraints.
The northwestern province of Shaanxi recently urged local departments, as requested by the Chinese state planner and other authorities, to verify the crude steel production of the local steel producers in 2020 and explain who the production exceeded or did not exceed the designated capacity
Another major steel-producing city, Handan, in Hebei Province, recently issued a call to ask the factories to take production control measures in the second quarter.