SINGAPORE: Iron ore futures prices edged up on Monday as rising crude steel production in top consumer China bolstered sentiment for the steelmaking material, though US steel tariff concerns capped gains.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.28% higher at 705 yuan ($98.13) a metric ton, as of 0253 GMT.
The benchmark July iron ore on the Singapore Exchange rose 0.25% to $94.4 a ton. China’s crude steel output in May gained 0.6% from April as mills boosted their operating rates to take advantage of healthy profit margins spurred by exports.
Around 60% of blast-furnace steel mills in China reported positive margins as of June 12, data from consultancy Mysteel showed.
Still, average daily hot metal output, typically used as a gauge of iron ore demand, dipped around 0.1% week-on-week to 2.416 million tons as of June 13, according to Mysteel data.
On the trade front, a range of imported household appliances, including dishwashers, washing machines, refrigerators and more will be subject to Trump’s 50% steel tariffs from June 23.
Broadly, China’s new home prices declined 0.2% in May from the previous month, official data showed on Monday, a sign that the country’s property sector remains stagnant despite several rounds of policy support measures.
Also pressuring prices was a stronger US dollar, driven by safe-haven buying amid intensifying geopolitical tensions in the Middle East.
Iron ore dips as market awaits clarity on Sino-US trade talk progress
A firmer dollar makes dollar-denominated assets less affordable to holders of other currencies.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 1.81% and 1.04%, respectively. Steel benchmarks on the Shanghai Futures Exchange strengthened.
Rebar rose 0.81%, hot-rolled coil was up 0.88%, wire rod edged 0.3% higher and stainless steel inched up 0.04%.
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