MANILA: Dalian iron ore prices rose on Tuesday on a technical support, after a steep monthly loss in October but poor demand outlook in China dented sentiment.
The most traded January iron ore on the Dalian Commodity Exchange (DCE) advanced 0.4% to 615.50 yuan ($84.21) a tonne at 0426 GMT, after dropping as much as 2.2% earlier in the session to 599.50 yuan, its lowest since July 22.
The contract has fallen more than 30% from its June peak of 890 yuan a tonne on COVID-19 curbs and a slowdown in the property sector in China. It fell 15.3% in October, its steepest monthly loss since February 2020.
“600 renminbi (Chinese yuan) is a psychological support level for the DCE contract,” said Marex analyst Zenon Ho. On the Singapore Exchange (SGX), the December contract was down 0.6% at $76.70 a tonne, having shed over 50% off an April high above $160. China’s factory activities in October shrank, weighing further on demand outlook for metals and suggesting a weaker economic recovery in the fourth quarter.
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