Dalian iron ore dips as traders assess mixed Chinese macro data
SINGAPORE: Iron ore edged lower on Tuesday as traders assessed mixed macroeconomic data from top consumer China, though resilient steel mill profits lent some support.
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) traded 0.43% lower at 696.5 yuan ($97.00) a metric ton, as of 0255 GMT.
The benchmark July iron ore on the Singapore Exchange fell 1.03% to $93.1 a ton. China's crude steel output in May slid 6.9% from a year earlier to 86.55 million tons, data from the National Bureau of Statistics (NBS) showed on Monday.
Meanwhile, new home prices fell in May, extending a two-year long stagnation, official data showed on Monday, highlighting challenges in the sector despite several rounds of policy support measures.
The country's factory growth hit a six-month low in May, though retail sales, a gauge for consumption, picked up steam, offering temporary relief amid a fragile truce in its trade war with the United States.
While blast furnace production is peaking, profits remain high, and steel mills are not incentivised to reduce production, said broker Galaxy Futures.
Around 60% of blast-furnace steel mills in China reported positive margins as of June 12, said consultancy Mysteel.
Iron ore dips as market awaits clarity on Sino-US trade talk progress
Moreover, port arrival volumes of iron ore fell 8.62% week-on-week to 23.85 million tons as of June 13, Mysteel data showed.
Other steelmaking ingredients on the DCE strengthened, with coking coal and coke up 0.77% and 0.74%, respectively.
Steel benchmarks on the Shanghai Futures Exchange lost ground.
Rebar ticked down 0.03%, hot-rolled coil fell 0.13%, wire rod lost 0.67% and stainless steel was down 0.6%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
6 hours ago
- Business Recorder
Copper bounces on Trump pause on ME as tariff uncertainty lingers
LONDON: Copper prices rebounded on Friday after US President Donald Trump pushed back a decision on US military involvement in the Israel-Iran conflict, but gains were capped by uncertainty over tariffs and Chinese demand. Three-month copper on the London Metal Exchange was up 0.4% at $9,654 a metric ton by 1400 GMT. Earlier in the session, prices hit the weakest since June 13 at $9,558.50. Most metals moved higher along with stock markets after news emerged that Trump will decide in the next two weeks whether the US will get involved in the Israel-Iran air war and as Europe tried to coax Tehran back to negotiations. 'We've got the geopolitical uncertainty in the background although maybe a little bit of a reprieve on that side in the sense that Trump wants to allow a bit more time for diplomacy,' said Nitesh Shah, commodity strategist at WisdomTree. 'But we still have all the trade fears, which may have become a secondary feature over the last week. It's not that far down the line before the expiry of the 90-day pause on the Liberation Day tariffs.' The 90-day pause in Trump's broadest 'reciprocal' tariffs will end on July 8. Premiums for nearby LME copper contracts have jumped to their highest since October 2022 because of low inventories and large holdings of cash contracts and warrants, traders said. Copper stocks in LME registered warehouses at 99,200 tons have dropped more than 60% since the middle of February and are at their lowest since August 202. Much of the outflow of LME stocks has been to the United States to take advantage of higher copper prices there in anticipation of US tariffs being imposed. US Comex copper futures dipped 0.3% to $4.84 a lb, bringing the premium of Comex over LME copper to $1,016 a ton. A Shanghai-based metals analyst at a futures firm said in addition to the Middle East and US interest rates, investors were concerned about weaker demand in top metals consumer China. Among other metals, LME aluminium gained 0.7% to $2,540 a ton, zinc rose 0.4% to $2,651.50 and tin climbed 1.5% to $32,490 while nickel shed 0.4% to $14,995 and lead dipped 0.1% to $1,989.50.
Business Recorder
6 hours ago
- Business Recorder
Dalian iron ore set for weekly gains on resilient China demand
SINGAPORE: Prices of Dalian iron ore futures rose on Friday and were poised for modest weekly gains on resilient demand for the steelmaking ingredient in top consumer China, outweighing a persistent slump in China's property market. The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) was up 1.36% at 706 yuan ($98.31) a metric ton, as of 0245 GMT. The contract has gained 0.57% so far this week. The benchmark July iron ore on the Singapore Exchange traded 1.42% higher at $94 a ton, but has eased 0.22% so far for the week. The operating rate of blast furnaces in China edged higher in the week ended June 20 to reach 83.82%, up some 0.4% from the previous week, according to data from consultancy Mysteel. Mysteel data also showed how hot metal output, a gauge of iron ore demand, inched up 0.24% week-on-week to 2.422 million tons, as of June 20. 'While demand is resilient now, the market's main focus is whether off-season demand will continue to be priced into market trading,' said broker Galaxy Futures. Spring is typically the peak season for construction in China ahead of the rainy season from June. 'Meaningful growth in steel and iron ore demand is unlikely until new construction activity lifts,' said ANZ analysts. China's new home prices fell in May, extending a two-year-long stagnation, official data showed on Monday. Demand for new homes in China is likely to remain substantially below the market's 2017 peak over the next few years, Goldman Sachs said late on Monday, in a projection suggesting that the world's second-biggest economy faces a long property slump. Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 2.23% and 2.05%, respectively. Most steel benchmarks on the Shanghai Futures Exchange strengthened. Rebar rose 0.57%, hot-rolled coil and wire rod both gained around 0.7%, while stainless steel shed 0.32%.
Business Recorder
6 hours ago
- Business Recorder
Japanese rubber futures dip on supply woes
SINGAPORE: Japanese rubber futures eased on Friday on softer demand for the tyre-making material in top consumer China, though the contract posted weekly gains as wet weather sparked supply concerns. The Osaka Exchange (OSE) rubber contract for November delivery ended daytime trade 2.9 yen lower, or 0.97%, at 295.4 yen ($2.03) per kg. The contract gained 1.1% this week. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery dipped 110 yuan, or 0.79%, to 13,900 yuan ($1,934.72) per metric ton. The most active July butadiene rubber contract on the SHFE fell 105 yuan, or 0.89%, to 11,630 yuan ($1,618.76) per metric ton. 'Rainfall in production areas at home and abroad interfered with tapping and the overall output of raw materials was in short supply,' said Chinese commodities data provider Longzhong Information. Central and southern China were on high alert for more flash floods on Friday as the annual East Asia monsoon gathered pace. Top producer Thailand's meteorological agency warned of rainfall that could cause flash floods and overflows from June 21-26, adding that farmers should prepare for crop damage. Consumption from the tyre industry is poor as demand enters the off-season, weighing on prices, said Chinese financial information site Tonghuashun Information. In currency markets, the yen edged up 0.1% to 145.35 per dollar. A stronger currency makes yen-denominated assets less affordable to overseas buyers. The front-month rubber contract on Singapore Exchange's SICOM platform for July delivery last traded at 161.2 US cents per kg, down 1.6%.
