Iron ore consolidates ahead of China’s annual parliamentary meeting

BEIJING: Iron ore prices moved in a tight range on Wednesday, as investors and traders exercised caution with eyes on the upcoming annual parliamentary meeting in the world’s second-largest economy starting on March 5.

The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) erased earlier gains to slide 0.33% to 746.5 yuan ($107.86) a metric ton as of 0153 GMT.

The benchmark April iron ore on the Singapore Exchange was down 0.67% at $98.35 a ton, as of 0143 GMT.

Investors were closely monitoring cues for China’s macro economic and industrial policy trend to gauge the demand outlook for steel and its ingredients.

Most analysts expect Premier Li Qiang’s report on March 5, the first day of the gathering, to announce a growth target of between 4.5% and 5%, while pledging to boost both consumption and investment in high-tech industries.

Beijing will also release its 15th five-year plan, which sets strategic objectives and policies for 2026–2030.

Hopes for more forceful stimulus became more intense after China’s factory activity contracted for the second consecutive month in February, an official survey showed on Wednesday.

Coking coal and coke, other steelmaking ingredients, shedgains from the previous session to fall 0.27% and 0.06%, respectively.

Steel benchmarks on the Shanghai Futures Exchange were mixed.

Rebar and hot-rolled coil were little changed, wire rod added 0.18% and stainless steel dipped 0.21%.