China: Ferrous futures market rebounds on supply concerns

Iron ore futures on the Dalian Commodity Exchange (DCE) bounced back on potential supply concerns from the leading global producers of the key steelmaking ingredient amidst strong demand in the Chinese market. Steel futures on the Shanghai Futures Exchange (SHFE) recovered from earlier losses by 2.7% in today’s session. Closing prices of the most-traded iron ore and steel futures contracts on 25 Jun are:

• DCE iron ore futures Sept contract closed at RMB 1,185/t ($184) (+RMB 19.5)
• SGX iron ore futures Jul contract closed at $211.50/t (+6.3)
• SHFE rebar futures Oct contract closed at RMB 5,066/t ($785) (+RMB 133)
• SHFE HRC futures Oct contract closed at RMB 5,288/t ($819) (+RMB 128)