China’s benchmark futures for iron ore posted an increase on Friday but are all set to post a weekly decline of around 10% so far on the back of production cuts; however, steel prices continue to rise higher. Across 163 blast furnaces operating in China, capacity utilization rate declined to the lowest level seen since October 2019, coming in at 76.92% for the week.

Iron ore futures traded on the Dalian Commodity Exchange rose by 1.4% i nearly trading on Friday, but are set to end the week in red, with prices falling by 10.4% for the present week. On the other hand, steel futures continue to make gains as consumption surges higher as normal levels of economic activity resume in the wake of the pandemic-fueled lockdowns.

Demand for rebar as well as hot rolled coil steel increased by 7% and 2% respectively through this week. The May contract for rebar rose by 2.6% on the Shanghai Futures Exchange, posting a gain for the nine consecutive weeks while futures of hot rolled coil climbed 2.2% higher for the week, marking the fourth straight week in green.

June delivery’s stainless steel futures traded on the Shanghai Futures Exchange eased lower by 0.2% even as spot prices or iron ore for domestic delivery improved by $2 to trade at $168 per ton in the previous session.