BEIJING: Iron ore futures prices ticked up on Monday, helped by firm near-term demand, falling portside stocks and healthy steel margins in top consumer China, while the anticipation of growing supplies ahead curbed gains.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.25% higher at 786.5 yuan ($109.44) a metric ton, as of 0202 GMT.
The benchmark September iron ore on the Singapore Exchange added 0.3% to $100.3 a ton, as of 0152 GMT.
Despite a weekly decline, the average daily hot metal output among steelmakers remained above 240 million tons, a level typically considered a signal of resilient iron ore demand.
Around two-thirds of steel mills were operating at a profit in the week, as of July 31, compared to 59% in early July, data from consultancy Mysteel showed.
Also, portside inventory slid 0.6% from the week before to the lowest since February 2024 at 130.3 million tons, as of August 1, data from consultancy Steelhome showed.
The outlook of supplies rising in the second half of the year, however, limited price gains of the key steelmaking ingredient.
“Since miners kept their annual production guidance unchanged, it’s likely that shipments will ramp up in the remainder of the year, indicating growing supply,” analysts at broker First Futures said in a note.
The cyclones in Australia earlier this year had resulted in a sharp fall in shipments in the first quarter, contributing to generally lower shipments in the first half.
Other steelmaking ingredients on the DCE retreated, with coking coal and coke down 0.58% and 1.67%, respectively.
Steel benchmarks on the Shanghai Futures Exchange slipped, with rebar falling 1%, hot-rolled coil shedding 0.7%, wire rod sliding 1.28% and stainless steel ticking down 0.12%.
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