Iron ore gains 5th consecutive session

Dalian iron ore for September delivery ended the morning session up 1.7% to 884 CNY (equivalent to 139.03 USD)/ton, in the early trading session, iron ore price touched 887.50. CNY/ton, the highest since August 9.
On the Singapore Exchange, iron ore contract for delivery in May 2022 increased by 1.7% to 157.20 USD/ton.

Traders pushed prices higher despite China-Dalian Commodity Exchange raising trading limits and margin requirements for some of their products, including iron ore.
Changes to trading limits and returns will take effect from the settlement date of March 31.

Prices of steelmaking components in China rose on hopes of more policy to support the world's second-largest economy and the largest steel producer now struggling to combat COVID-19.
On the Shanghai futures exchange, the price of bar steel fell 0.4%, while hot rolled coil fell 0.9%.

Although there are trading limits and margin requirements for some futures products, including steel. However, traders remain cautious in pushing iron ore prices up following Dalian exchange's announcement of increased trading fees and margin requirements for speculative trading.

Dalian iron ore prices are up about 30% this year despite recent moves by Chinese authorities to curb gains amid concerns about inflation as commodity prices soar.
The Securities Times reported that China's central bank may reduce banks' reserve requirement ratio in the second quarter.

The cost of iron ore and coal is likely to remain high in 2022 due to geopolitical tensions and state measures to reduce carbon emissions. They also expect a strong recovery in steel demand in the second quarter when the blockade is lifted, Fitch Rating said

.Stainless steel prices increased by 0.7%. Coking coal prices in Dalian rose 0.2 percent and coking coal rose 1.8 percent.