Iron-ore futures edged higher on Monday, beginning the New Year on a firm note, supported by strong Chinese demand and ongoing supply constraints.
The Dalian Commodity Exchange (DCE) and the Shanghai Futures Exchange (SHFE) resumed trading on January 5 after the New Year holiday in China.
The most-traded May iron-ore contract on the DCE traded 0.76% higher at 795.5 yuan ($113.94) a metric ton, as of 0243 GMT.
The benchmark February iron-ore contract on the Singapore Exchange rose 0.29% to $105.65 a ton.
Chinese iron-ore prices are being underpinned by steelmakers restocking ahead of the Lunar New Year holiday in February, while tight domestic supplies are also lending further support.
China’s domestic iron-ore supply has remained constrained, with several mines limiting output due to environmental protection measures, according to a note from Shanghai Metals Market.
Inventories of the five major carbon steel products held by Chinese steel mills fell 1.1% week-on-week to 3.81-million tonnes during December 26 to 31, consultancy Mysteel reported.
Other steelmaking ingredients on the DCE traded down, with coking coal and coke down 1.12% and 1.77%, respectively.
Steel benchmarks on the SHFE were mixed. Rebar declined 0.38%, hot-rolled coil traded down 0.49%. Meanwhile, wire rod gained 4.93% and stainless steel firmed 0.65%.