MANILA: Iron ore futures edged up on Wednesday after trading in a tight range, as signs of economic stabilisation in China helped offset worries over the struggling property sector in the world’s top steel producer.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended morning trade 0.4% higher at 873 yuan ($119.63) per metric ton. On the Singapore Exchange, the benchmark October iron ore was up 1.2% at $121.65 per ton, as of 0445 GMT, following two straight sessions of losses.
The iron ore market was consolidating gains amid an improved outlook for China, ANZ commodity strategists said in a note. The steelmaking ingredient’s reference price in Singapore has so far risen more than 5% this month and remained firm above $120 per ton, buoyed by China’s economic stimulus efforts.
Also helping lift the overall mood, latest indicators showed the world’s second-largest economy was finding its footing after a sharp slowdown - seen as a key reason why China’s central bank kept benchmark lending rates unchanged at a monthly fixing on Wednesday. “The continued introduction of favourable macroeconomic policies has boosted market confidence,” Huatai Futures analysts said in a note. China will intensify macro-control efforts and focus on expanding domestic demand, boosting confidence, preventing risk and striving to achieve annual economic development goals, said Cong Liang, vice chairman of the National Development and Reform Commission.
The assurance came as the Asian Development Bank revised its economic growth forecast for developing Asia this year to 4.7%, from 4.8% projected in July, citing the weakness in China’s property sector. Other steelmaking inputs were also firmer, with coking coal and coke on the Dalian exchange up 0.3% and 0.4%, respectively.
But steel benchmarks were broadly lower in Shanghai. Rebar shed 0.4%, hot-rolled coil also dropped 0.4%, and wire rod dipped 2.2%. Stainless steel gained 0.5%.
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