Iron ore prices climbed on Thursday as indicators of increased blast furnace activity in China signaled stronger demand for the steelmaking raw material. The most-traded January iron ore contract on the Dalian Commodity Exchange ended 1.32% higher at 726.50 yuan per ton, or $108.15, while the benchmark October contract on the Singapore Exchange rose 2.17% to $99.40 per ton.
The gains followed data showing a steady increase in capacity utilization across blast furnaces and coke ovens in China since August 25, according to daily thermal satellite monitoring of 288 blast furnaces and 365 coke ovens. Steel exports from China totaled 2.55 million tons for the week ending August 31, up 7.8% week-on-week and 23.9% year-on-year, marking the third consecutive weekly increase and the highest level in nearly eight weeks, according to Mysteel.
Analysts attributed the price advance to signs of easing supply restrictions on coking coal, a resumption in blast furnace operations, and higher ocean freight rates. Atilla Widnell, managing director at Navigate Commodities, noted that a recent correction in Dalian coking coal futures suggested domestic supply restrictions—driven by heightened mine safety inspections—may be subsiding. The rebound in furnace activity and export growth underscores improving industrial momentum in China’s steel sector.
