SINGAPORE: Iron ore futures prices edged higher on Tuesday, underpinned by near-term demand in top consumer China, though lingering tariff concerns limited the rise.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) rose 0.49% to 713 yuan ($97.50) a metric ton, as of 0253 GMT.
The benchmark May iron ore on the Singapore Exchange was 0.76% lower at $98.6 a ton.
“Strong iron ore buying by steel mills and lower imports saw inventories decline sharply,” ANZ analysts said in a note. According to ANZ, steel production grew 4.6% to 93 tonnes in March despite government efforts to curb capacity.
Total iron ore stockpiles across ports in China fell 2.39% week-on-week to 134.6 million tons as of April 18, Steelhome data showed.
On the supply side, volumes of iron ore shipments from Australia and Brazil nudged up 0.1% from the previous week, said consultancy Mysteel in a note.
Still, tariff concerns are weighing on steel exports, affecting the demand outlook for iron ore in the second quarter, said broker Galaxy Futures.
China accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the US at its expense. On Monday, India imposed a 12% temporary tariff on some steel imports, locally known as safeguard duty, to curb a surge in cheap shipments primarily from China.
Other steelmaking ingredients on the DCE lost ground, with coking coal and coke down 1.89% and 1.51%, respectively. Steel benchmarks on the Shanghai Futures Exchange weakened.
Rebar dipped 0.13%, hot-rolled coil eased around 0.2%, wire rod inched 0.06% lower and stainless steel was down 0.55%.
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