BEIJING: Dalian iron ore extended gains on Wednesday as market participants bet on the prospects that steel demand will pick up further since China has entered its peak construction season.
Singapore benchmark iron ore, however, felt slight downward pressure after Federal Reserve Chair Jerome Powell indicated rate hikes could come at a faster pace from the US central bank.
The most-traded May iron ore futures contract on China’s Dalian Commodity Exchange (DCE) traded 0.77% higher at 911.5 yuan ($130.74)a tonne, as of 0200 GMT, following a rise of 1.34% on Tuesday. “Both supply and demand [of steel products] continue to recover,” analysts at Haitong Futures said in a note.
On the Singapore Exchange, the benchmark April iron ore was at $126.6 a tonne, down 0.28%.
“Hawkish comments from central bankers weighed on sentiment across markets. The subsequent risk off tone saw commodities come under pressure,” analysts at ANZ bank said in a note.
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