BEIJING: Iron ore futures moved within a tight range on Friday, as traders gauged lingering fears following government intervention and property support-led optimism in top consumer China.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) was down 0.25% at 978 yuan ($135.62) a metric ton, as of 0201 GMT.
The benchmark December iron ore on the Singapore Exchange was up 0.2% at $133.45 a ton, as of 0200 GMT, following a 1.15% drop in the previous session.
China’s state planner said it would closely monitor changes in the iron ore market and further tighten supervision of spot and futures trading in its latest effort to curb a price rally, leading to a price drop on Thursday.
Weighing on prices are also easing supply concerns after a union representing train drivers at BHP’s Pilbara iron ore operations in Western Australia withdrew industrial action.
Iron ore extends gain on China’s property sector support
Still, losses were limited by reports that Beijing introduced a series of moves to revive its debt-riden property sector, the country’s largest steel consumer.
China may allow banks to offer unsecured short-term loans to qualified property developers for the first time, Bloomberg News reported on Thursday.
This came after Chinese regulators are reported to have been drafting a list of 50 real estate developers eligible for funding.
“Iron ore prices are likely to consolidate in the near term amid the joint impact of favorable and unfavorable factors,” analysts at Everbright Futures said in a note.
Other steelmaking ingredients posted gains, with coking coal and coke on the DCE up 0.35% and 1.03%, respectively.
Some coal mines in Lvliang city in north China’s Shanxi province, its top coal production hub, temporarily suspended production due to intensified safety checks, consultancy Mysteel said in a note.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar fell 0.3%, hot-rolled coil edged down 0.17%, while wire rod added 0.3% and stainless steel climbed 1.25%.
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