After the statement of Dalian Commodity Exchange, the fluctuating course stopped
"Given the recent market uncertainties, iron ore prices have fluctuated greatly. Market institutions need to participate in the market rationally and harmoniously and control major risks to ensure the stable operation of the futures market."
In addition, DCE announced that it will continue to strengthen surveillance and investigate violations in the iron ore market to maintain market order.
Then, overnight purchases of the most traded May iron ore contract on DCE closed intraday purchases at Yuan 885.5/dmt ($129.1/dmt), up 0.5 Yuan/dmt from the settlement price compared to last Friday. Stock market data showed daytime purchases jumped Yuan 17.5/dmt, or 2%. And the iron ore contract has been up for most of the past week.
Expectation of recovery in ore demand triggered upward movement
Foreign sources stated that iron ore futures are moving upwards mainly due to the positive outlook prevailing in the market recently, as steelmakers believe that ore demand will recover in the short term.
In particular, Shanghai-based market representatives said, "The market expected many mills to buy more iron ore to build up their current low inventories, because with the improvement in steel consumption, they can steadily increase their steel output."
Optimistic mood in steel markets also boosts iron ore futures
"Experts also think that the finished steel market fundamental may become healthier in the coming weeks due to the decrease in steel inventories last week and the slight movement in steel trade."
Real iron ore demand from steelmakers has been sluggish lately, with many showing greater reluctance to purchase ore resources at higher prices.
Although the upward trend in market expectations was reflected in futures prices, iron ore spot prices did not increase further due to sluggish demand.