BEIJING: Iron ore futures were mixed on Tuesday, with the Dalian benchmark extending losses amid lingering concerns over near-term demand in top consumer China, while hopes of US Federal Reserve cutting interest rates underpinned the Singapore benchmark.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.94% lower at 844 yuan ($116.48) a metric ton as of 0245 GMT, after falling to as low as 839 yuan a ton earlier the session.
Diminishing steel demand dampened mills’ buying appetite for iron ore, with transaction volumes at major ports sliding by 17% from the previous session to 735,000 tons on Monday, data from consultancy Mysteel showed.
Prices of the key steelmaking feedstock have lost more than 6% from last week, even as more regional stimulus for the property market was unveiled to spur the struggling sector.
The benchmark July iron ore on the Singapore Exchange was 0.18% higher at $110.85 a ton, after softer-than-expected economic data strengthened expectations of a Fed rate cut later this year.
Iron ore slides on weakening China demand
Other steelmaking ingredients on the DCE receded, with coking coal and coke down 0.71% and 0.42%, respectively.
Steel benchmarks on the Shanghai Futures Exchange retreated further.
Rebar shed 0.6%, hot-rolled coil lost 0.5%, wire rod dipped 0.54% and stainless steel fell 0.59%.
Supply change has been under the focus after Beijing reiterated its decision to control crude steel output further this year and as demand receded amid higher temperatures and forecast of heavy rains in southern regions.
China’s crude steel output in 2024 may fall to 1.015 billion tons, analysts at Hongyuan Futures said in a note, from around 1.019 billion tons in 2023.
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