Iron ore rose as signs of solid Chinese demand offset concerns over rising supply, with futures hitting the highest since October 2024. The steel-making staple climbed as much as 1.3% to $111.90 a ton in Singapore, set for the sixth gain in seven sessions, as investors focused on steady steel production and firm mill profitability in the world’s largest user. Steelmakers’ financial performance imp...
Iron ore rose as signs of solid Chinese demand offset concerns over rising supply, with futures hitting the highest since October 2024. The steel-making staple climbed as much as 1.3% to $111.90 a ton in Singapore, set for the sixth gain in seven sessions, as investors focused on steady steel production and firm mill profitability in the world’s largest user. Steelmakers’ financial performance improved, with 60.2% of mills profitable, up 9 percentage points from the previous week, according to a survey from consultancy Mysteel that tracks margins across 247 plants. Blast-furnace capacity utilization — a key gauge of iron ore usage — held near 90%. Still, on the supply side, the current quarter is typically the peak shipping season for exports to China, which could pressure prices. Weekly flows from Australia and Brazil increased for a second week through May 3, with volumes from Vale SA rising sharply, according to Mysteel. The sustainability of the rally remains uncertain, according to Tongguan Jinyuan Futures Co . The approaching off-season for steel demand and weaker downstream consumption may limit marginal growth, analysts said in a note. Iron ore futures traded 1% higher at $111.55 a ton in Singapore at 11:47 a.m. local time. In China, yuan-denominated contracts gained on the Dalian Commodity Exchange, along with steel futures in Shanghai.
China’s Zhaojin Mining Industry Co. is looking to acquire more gold mines in Africa and other regions, Chief Investment Officer Xu Jianzhuo said in an interview. The Shandong-based miner is targeting assets in West African countries with stable political regimes like Cote d’Ivoire, Ghana and Guinea, and from where European and US miners are exiting, Xu said. The firm is also looking at projects in...
China’s Zhaojin Mining Industry Co. is looking to acquire more gold mines in Africa and other regions, Chief Investment Officer Xu Jianzhuo said in an interview. The Shandong-based miner is targeting assets in West African countries with stable political regimes like Cote d’Ivoire, Ghana and Guinea, and from where European and US miners are exiting, Xu said. The firm is also looking at projects in Central Asia and the Asia Pacific, he added. Gold miners globally have stepped up acquisitions in recent years as prices for the precious metal rallied to successive records. Chinese firms have joined in the M&A race, with Zijin Mining Group Co. , Zhaojin’s largest domestic peer, buying Allied Gold Corp earlier this year to extend ownership over mines in Mali, Cote d’Ivoire and Ethiopia. A fragmented industry has presented opportunities for consolidation, a trend Xu sees continuing for the foreseeable future. Some miners spin off non-core assets after completing M&A deals, which could be snapped up by Chinese firms, he said. “Gold M&As are very active at the moment,” he said. “The trend will only become stronger. Even under such high gold prices, we still see deals being carried out to boost scale.” Meanwhile, the recent pullback in gold prices due to the Iran war is likely temporary as other major drivers like central bank buying and diversification away from the US dollar remain intact, Xu said. Zhaojin’s first major overseas foray was the 2024 acquisition of assets in Cote d’Ivoire, where the Abujar mine is on course to produce 4 to 5 tons of gold this year, meeting earlier guidance, the CIO said. The miner has also inserted copper into its asset portfolio for the coming years, but given the high capital expenditure associated with mining the industrial metal, will approach any acquisitions with caution, Xu said. The company is interested in relatively small copper projects in countries like Namibia and Botswana in southern Africa, he added. Zhaojin’s shares have rallie...