SINGAPORE: Iron ore futures prices edged up on Tuesday, underpinned by hopes of a trade deal between the US and top consumer China, while strengthening near-term demand for the steelmaking ingredient also supported prices.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.57% higher at 708.5 yuan ($97.98) a metric ton, as of 0243 GMT.
The benchmark June iron ore on the Singapore Exchange was 1.03% higher at $97.55 a ton.
US President Donald Trump on Sunday said the US was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal.
Beijing is “evaluating” an offer from Washington to hold talks over US President Donald Trump’s 145% tariffs, China’s Commerce Ministry said on Friday.
Meanwhile, China’s services activity expanded at the slowest pace in seven months in April, weighed by uncertainty caused by US tariffs, a private sector survey showed on Tuesday.
The steel market is concerned about overseas recession risks sparked by tariffs, with anti-dumping measures negatively impacting future steel demand, said broker Hexun Futures. Still, domestic hot metal output remains high, and demand from end-users continues to be resilient, said broker Galaxy Futures.
“Production among Chinese blast furnace steel producers edged up further during April 25-30, though the mills saw their margins shrink,” said consultancy Mysteel.
Iron ore range-bound as traders weigh China demand
On the supply side, total iron ore stockpiles across ports in China climbed 2.24% week-on-week to 136.8 million tons as of April 30, Steelhome data showed. Other steelmaking ingredients on the DCE languished, with coking coal and coke down 1.78% and 2.17%, respectively.
Steel benchmarks on the Shanghai Futures Exchange traded sideways.
Rebar eased 0.26%, hot-rolled coil ticked up 0.06%, stainless steel gained nearly 0.2% and wire rod traded flat.
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