The global iron ore market saw mixed movements during the morning trading session on April 22nd. While iron ore prices in the Chinese market rose slightly due to short-term demand, futures prices in Singapore experienced a negligible downward adjustment.
Iron ore price movements on exchanges
At the Dalian Commodity Exchange (China), the most actively traded iron ore contract recorded a 0.38% increase, reaching 787 yuan per ton (approximately $115.37 per ton). This development reflects the cautious but stable sentiment of investors in the world's largest consumer market.
Meanwhile, on the Singapore Exchange, May iron ore futures prices recorded a slight decrease of 0.14%, to $106.75 per ton. The slight divergence between the two main exchanges suggests that the market is in a phase of seeking a new equilibrium after supply negotiations.
Demand for stockpiling ahead of the holiday season is supporting prices.
According to expert analysis, the main reason for the stability of iron ore prices is that major mining corporations have completed negotiations on supply contracts with China's state-owned purchasing unit. Clarifying the future supply outlook has helped eliminate factors that put psychological pressure on the market.
Notably, short-term demand remains positive. Steel mills in China tend to increase their raw material inventories to ensure production runs throughout the May holiday period. This inventory replenishment plays a crucial role in supporting iron ore prices, preventing sharp declines due to more abundant supply.
Correlation with the relevant raw material market
Besides iron ore, the prices of coking coal and coke also recorded a slight increase this morning. This indicates that the input costs of the metallurgical industry are fluctuating uniformly in line with short-term stockpiling trends.
Conversely, finished steel products on the Shanghai Futures Exchange showed little change. Some items recorded slight increases, while others adjusted downwards, reflecting the divergence in final consumption demand from the infrastructure and construction sectors.
Long-term market outlook
In the long term, experts forecast that demand for seaborne iron ore will remain stable over the next few years. While a slight decline may occur in some major markets, growth in emerging economies and the recovery in Europe are expected to be important offsetting factors in the global supply-demand balance.
Source: https://baolamdong.vn/gia-quang-sat-ngay-224-on-dinh-quanh-moc-106-usdtan-437686.html
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