Iron ore prices were up on Tuesday after China’s June trade data was released.
Imports climbed 36.7% from a year earlier, beating the median forecast of 29.5%. Export growth accelerated to 32.2% in dollar terms, the customs administration said, overturning economist’s expectations of a slowdown to 23%. That left a trade surplus of $51.5 billion for the month, the highest since January.
“The surprise surge in exports is probably in large part due to rising commodity prices, as commodities like iron ore soared and price pressures passed on from imports to exports,” said Zhou Hao, senior emerging markets economist at Commerzbank AG.
Iron ore futures in Asia rose on Tuesday, with the benchmark Dalian contract advancing by more than 3%.
The most-traded September iron ore on China’s Dalian Commodity Exchange gained as much as 3.5% to 1,227.50 yuan ($189.87) a tonne.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $218.48 a tonne on Tuesday, up 0.3% from Monday’s closing.
A consensus is emerging among industry leaders and market analysts that China’s steel demand will ease in the second half of 2021, which may slow mills’ iron ore purchases.
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