BEIJING: Prices of iron ore futures were range-bound on Thursday, before a slew of data from top consumer China that’s likely to set the direction for demand.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) was down 0.19 percent to 800.5 yuan (USD112.41) a metric ton, as of 0341 GMT. The benchmark October iron ore on the Singapore Exchange was 0.17 percent lower at USD106.65 a ton, as of 0331 GMT.
Next Monday, China is due to release a batch of key data including property, economic growth and output of industrial metals. A tight balance between supply and demand of the key steelmaking ingredient is expected to provide some support to ore prices, analysts at brokerage First Futures said.
Still, the focus is on whether Beijing will enforce steel production cuts across the country in the remainder of the year to rebalance a market that has been dragged by overcapacity and faltering demand.
While ore prices found support from improving demand after some Chinese steel makers ramp up operations after curbing output for a military parade on September 3, falling steel margins and accumulated stock loomed large as downside risks.
Prices of Coking coal and coke and other steelmaking ingredients, rose 1.7 percent and 0.97percent, respectively, as the latest mine accident raised concerns over more stringent safety checks that could constrain supply, said analysts.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar dipped 0.35percent, hot-rolled coil and wire rod were little changed and stainless steel shed 0.23percent.
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