SINGAPORE: Dalian iron ore futures inched higher on Monday, after China announced more plans to revive its flagging economy, although Singapore iron ore futures dipped slightly.
The most-traded September iron ore on China’s Dalian Commodity Exchange rose 0.8% to 849.5 yuan ($118.11) per metric ton as of 0400 GMT.
On the Singapore Exchange, the benchmark August iron ore was down 0.3% at $113.4 a metric ton, coming down from a three-month high in the previous session.
China’s state planner on Monday unveiled measures that seek to promote, encourage and spur private investment in some infrastructure sectors and said it will strengthen financing support for private projects.
This came after China’s cabinet approved guidelines last Friday on transforming underdeveloped areas in megacities.
On production, a total of 13 blast furnaces, accounting for about 58,000 metric tons, will be under maintenance over July 21 to 31, analysts at Mysteel said in a note on Monday, up from seven last Friday.
Despite today’s gains, concerns over demand persisted.
“Steel demand remained soft as property indicators deteriorated and lean seasonal demand leaves little hope of a favourable shift,” analysts at ANZ investment bank said in a note.
“The profitability of Chinese steel mills has turned negative, limiting the chances of any immediate increase in steel production,” ANZ added.
Steel benchmarks on the Shanghai Futures Exchange moved up.
The most-active rebar contract on the Shanghai Futures Exchange strengthened 0.9%, hot-rolled coil increased 1%, wire rod jumped 3.7%, and stainless steel rose 1.2%.
Steelmaking ingredients Dalian coking coal fell 1%, while coke gained 0.3%.
Comments
Comments are closed.