Home NewsCommodities News Iron Ore Futures: China iron ore futures jump nearly 7% after India hikes export duties

Iron Ore Futures: China iron ore futures jump nearly 7% after India hikes export duties

by WOOWinvest
0 comment
Iron Ore Futures: China iron ore futures jump nearly 7% after India hikes export duties

Benchmark iron ore futures in China surged about 7 percent on Monday, tracking their biggest one-day gain in two-and-a-half months, after India raised export duties on some goods to rein in expanding inflationary pressures.

Asia’s third-largest economy has raised export duties on iron ore and steel intermediates, from 30% to 50% on new iron ore and concentrates, and from zero to 45% on pellets. The government has also removed import duties on coking coal and coke.

India is one of China’s main suppliers of alternative iron ore, accounting for nearly 3% of China’s total imports in 2021.

However, Chinese purchases from the country fell sharply in the first four months of the year amid rising demand from India and falling iron ore prices.

“The impact of changes in India’s iron ore export tariffs is not significant,” said Cheng Peng, an analyst at Sinosteel Futures.

“The key issue is on the supply side, which will have a bigger impact on market expectations (India can offset the damage from the Ukraine-Russia conflict).”

The most-traded iron ore futures for September delivery on the Dalian Commodity Exchange closed up 4.4 percent at 864 yuan ($129.65) a tonne, after rising as much as 6.9 percent to a high of 884 yuan on May 6.

Iron ore futures for June delivery in Singapore edged up 0.6% to $135 a tonne.

Other steelmaking raw materials fell on the Dalian Exchange, with coking coal down 2.5 percent to 2,567 yuan a tonne and coke prices retreating from early gains to 3,370 yuan a tonne, down 0.8 percent.

Rebar for October delivery on the Shanghai Futures Exchange fell 0.2% to 4,604 yuan a tonne, while hot-rolled coil fell 0.3% to 4,731 yuan a tonne.

Stainless steel futures in Shanghai fell 2.2 percent to 18,535 yuan a tonne. ($1 = 6.6639 yuan) (Reporting by Zhang Min in Beijing and Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy