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Iron ore prices rise on the back of a recovery in output and supply constraints

Iron ore futures climbed on Wednesday as the anticipated recovery of hot metal production sparked demand for feedstocks. Lower shipments by top suppliers also provided support.

As of 0317 GMT, the?most-traded?contract for May iron ore?on China's Dalian Commodity Exchange was up 0.96% to 788 yuan (114.76 dollars) per metric ton.

The benchmark April Iron Ore traded at the Singapore Exchange was up 0.49% to $104.25 per ton.

After production restrictions during the annual Parliament holiday, hot metal output is expected to recover. This will spur demand for feedstock.

According to a Shanghai Metals Market note, the prices of iron ore in the Chinese iron ore hub Tangshan "remained firm due to tight supply" and that the recent rally for iron ore futures had boosted the market's sentiment.

Prices were also supported by lower shipments of?iron ore from China's main?iron-ore suppliers, Australia, Brazil and South Africa.

Iron ore stocks at port are record highs Gains are likely to be limited.

BMI's report of March 11 stated that China's crude output will fall by 4% due to the authorities reducing excess capacity.

The report said that lower export volumes of Chinese?steel are likely to increase global steel prices marginally in 2026. However, global prices will still be?projected? to remain on a downward trend.

Coke and coking coal were both up and down on the DCE.

The Shanghai Futures Exchange steel benchmarks mostly rose. Hot-rolled coils and rebar grew by 0.18% each. Wire rod was little changed, while stainless steel fell 0.81%.

BMI's report said that curbing excess production of hot-rolled coils and rebars supported prices. Reporting by Ruth Chai, Editing by Sherry Jacobi-Phillips. $1 = 6.8663 Yuan

(source: Reuters)