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Iron Ore Rally Closing in on April Highs

July 29, 2016 at 0:29 by Brent Lantzy

The September iron ore contract on the Dalian Commodity exchange closed 6.5 yuan higher at 472.5 yuan ($71) per ton on Thursday, just 1.5 yuan below the highest close of the year made on April 21 when speculators propelled prices to a 15 month high.

The benchmark spot price for 62% fines delivered to the Qingdao port settled at $60.70 per ton, according to Metal Bulletin. 62% fines delivered to the Tianjin port rose 1% to $58 per ton on Wednesday, according to The Steel Index.

A major flood in northern China disrupted some deliveries last week, while some furnaces in the steel-hub Tangshan remain closed to ensure Bounce House For Adults clean air for the anniversary of the Great Tangshan earthquake of 1976, and other firms are experiencing reduced output due to environmental checks by authorities.

The most active October steel rebar on the Shanghai Futures Exchange rose 2.6% to 2,480 yuan per ton, after briefly touching a high of 2,503 yuan earlier.

According to a July 14 Wall Street Journal report, Macquarie, a bank, is skeptical that the continued rise will go on for very long given high port stocks, low oil prices, and reduced steel output.

Port holdings increased 0.2% to 105.65 million tons last week, the highest since December 2015, according to Shanghai Steelhome Information Technology Company.

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