Benchmark iron ore futures in China rose about 7% in early trade on Monday,
tracking their biggest daily jump in two-and-a-half months, after India
increased export duties on some commodities to rein in broadening inflationary
pressures.
Asia’s
third-largest economy raised export duties for iron ore and steel intermediates,
with new iron ores and concentrates tariffs increased to 50% from 30% and
duties on pellets hiked to 45% from zero. The government also removed import
tariffs for coking coal and coke.
However, China’s
purchase from the country fell sharply in the first four months of this year
due to increasing demand in India and falling iron ore prices.
“Impact from the
changes in iron ore export tariffs in India is not that significant,” said
Cheng Peng, an analyst with SinoSteel Futures.
“The key issue is
on the supply side, and that would have bigger impact on market expectations
(that India could offset disruptions caused by the Ukraine-Russia conflict).”
The most-traded
iron ore futures on the Dalian Commodity Exchange, for September delivery, were
up 4.4% at 864 yuan ($129.18) a tonne, as of 0208 GMT, after rising as much as
6.9% to 884 yuan, their highest May 6, in early trade.
Singapore iron ore
futures, for June delivery, rose 1.4% to $136 a tonne.
Other steelmaking
ingredients on the Dalian bourse were mixed, with coking coal falling 0.9% to
2,610 yuan a tonne while coke prices jumped 1.2% to 3,437 yuan per tonne.
Steel rebar on the
Shanghai Futures Exchange, for October delivery, edged up 0.2% to 4,622 yuan a
tonne and hot-rolled coils gained 0.3% to 4,762 yuan per tonne.
Shanghai stainless
steel futures declined 1.9% to 18,595 yuan a tonne. ($1 = 6.6883 Chinese yuan)
(Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by
Subhranshu Sahu)