Dalian iron ore edges up in choppy trade, SGX benchmark extends fall

MANILA: Iron ore futures were mixed on Tuesday, with Dalian prices edging up in choppy trade while the Singapore benchmark extended losses, after data showed China's crude steel production fell for a third straight month in November.

The steelmaking ingredient's most-active May contract on China's Dalian Commodity Exchange traded weaker for most of the morning session before settling 0.1% higher at 980.50 yuan ($149.60) a tonne by the midday break.

Iron ore's most-traded January contract on the Singapore Exchange fell 0.5% to $150.80 a tonne by 0352 GMT, extending losses for a second day after a 14-session rally that stretched valuation to above $160.

China, the world's biggest steel producer, churned out 87.66 million tonnes of crude steel last month, down from 92.2 million tonnes in October but up from 80.29 million tonnes in November 2019.

On a positive note, industrial output in the world's top metals consumer grew 7% in November from a year earlier, expanding for the eighth straight month.

But "the growth picture is at risk", said Iris Pang, ING chief economist for Greater China. "We continue to see the technology war as the biggest risk for China in 2021, along with the risk of credit defaults continuing."