BEIJING: Iron ore futures prices dangled in a tight range on Tuesday, as investors and traders were awaiting a raft of more economic data from top consumer China for clarity of demand outlook and stimulus prospects.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) was 0.85% higher at 712 yuan ($97.41) a metric ton, as of 0316 GMT.
The benchmark May iron ore on the Singapore Exchange was, however, 0.29% lower at $97.85 a ton as of 0310 GMT.
China is scheduled to release a batch of more economic indicators and industrial metals output data on Wednesday. Mixed market signals have blurred demand outlook for the key steelmaking ingredient, leaving prices swinging back and forth in a narrow range.
Relatively high hot metal output underpinned near-term ore demand, arresting a potential price slump amid the escalating trade tensions between the world’s two largest economies.
But it’s hard to see hot metal output surpass 2.45 million tons without substantial good news for the steel sector, analysts at Maike Futures said in a note.
Moreover, while China’s steel exports in March beat expectations to exceed 10 million tons, outbound shipments in the second half of the year will likely feel the pain from the intensifying trade frictions fueled by the heightened tariffs by US President Donald Trump, said analysts.
UBS has downgraded China’s GDP growth forecast to 3.4% in 2025.
A potentially slower economic growth indicates weaker demand for industrial metals products.
Iron ore ticks up on upbeat China data
Other steelmaking ingredients on the DCE advanced, with coking coal and coke up 0.17% and 0.72%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange retreated.
Rebar dipped 0.26%, hot-rolled coil shed 0.28%, wire rod languished 0.24% while stainless steel nudged up 0.12%.
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