Iron ore rangebound as investors await more China data – ET Auto

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Prices of the key steelmaking ingredient had climbed by more than 6% within the past week, owing to the improved demand outlook.

Iron ore futures prices were rangebound on Monday, as investors awaited the release of more key data from top consumer China for signals of further direction.

China is due to release a slew of key data, including output of key commodities, property investment, and the economic growth for the first quarter, on Tuesday.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.85% higher at 834.5 yuan (USD 115.29) a metric ton, as of 0313 GMT.

The benchmark May iron ore on the Singapore Exchange was, however, 0.35% lower at USD 110.65 a ton, as of 0310 GMT.

Prices of the key steelmaking ingredient had climbed by more than 6% within the past week, owing to the improved demand outlook.

But a batch of weaker-than-expected macroeconomic data in the world’s second-largest economy, coupled with lingering property woes, cast a shadow on steel consumption outlook in the medium to long term, said analysts.

New bank lending in China rose less than expected in March from the previous month, while broad credit growth hit a record low, boosting the case for the central bank to roll out more stimulus steps to help hit an ambitious growth target.

State-backed Chinese real estate developer Vanke said it is facing short-term liquidity pressure and operational difficulty but has prepared “a basket of plans” to stabilise its business and cut debt.

Other steelmaking ingredients on the DCE recorded gains, with coking coal and coke up 2.18% and 1.79%, respectively.

Steel benchmarks on the Shanghai Futures Exchange were mostly down.

Rebar dipped 0.69%, hot-rolled coil edged down 0.19%, wire rod declined 1.41%, while stainless steel added 1.2%.

“Given the remaining high steel stocks, a further increase in hot metal output might not be conducive to the sustainability of a price rebound,” analysts at First Futures said in a note. (USD 1 = 7.2383 Chinese yuan)

  • Published On Apr 15, 2024 at 11:44 AM IST

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