Jan 18 (Reuters) – Iron ore futures rose amid high trading volumes on Wednesday as traders looked for bargain buying after notable losses in earlier sessions as China’s state planners held a meeting to discuss measures to curb price gouging and speculation.
The top-traded May iron ore on China’s Dalian Commodity Exchange rose 0.7% to 840.0 yuan ($123.96) a tonne as of 0308 GMT.
On the Singapore Stock Exchange, the benchmark iron ore price rose 0.8% to $121.55 a tonne in February.
China’s state planner on Wednesday issued its third warning this month against excessive speculation in iron ore, adding that it would step up surveillance of the country’s spot and futures markets.
The outcome of Tuesday’s meeting lacked real bite, so markets assimilated and moved on. In fact, some traders are using these events as a buy the dip opportunity, said Atilla Widnell, managing director of Navigate Commodities.
Brazil’s CSN Mineracao SA (CMIN3.SA) announced on Tuesday that it has reached an agreement on a long-term supply of iron ore to Swiss trader Glencore.
Asian equities were mixed, the Japanese yen fell and Japanese yields stayed above the policy ceiling after the Bank of Japan unanimously voted to maintain its yield curve controls.
The most active rebar contract on the Shanghai Futures Exchange rose 1.2%, hot-rolled coil was up 1.3%, wire rod was up 0.9% and stainless steel was up 0.4%.
In 2023, crude steel production will continue to be impacted by the Chinese central government’s determination to ensure steel production remains flat or below last year’s total, according to consultancy Mysteel.
Dalian coking coal and coke rose 1.8% and 1.1%, respectively.
Coronado Global Resources (CRN.AX), which has not normally sold Australian coking coal to China, has received requests for long-term supplies as Beijing lifts its unofficial ban on coal imports from Australia, its chief executive said on Wednesday.
($1 = 6.7765 yuan)
Reporting by Matthew Chye; Editing by Uttaresh.V
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