SINGAPORE: Dalian iron ore futures closed daytime trade flat on Tuesday after six consecutive sessions of losses, as traders weighed low feedstock prices and declining shipments against soft demand.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade unchanged at 761.5 yuan (USD110.19) a metric ton.
The benchmark March iron ore on the Singapore Exchange was 0.5 percent higher at USD100.4 a ton, trading above the USD100 psychological threshold as of 0708 GMT.
The total amount of iron ore arriving at 47 Chinese ports declined week-on-week from February 2-8, according to data released by consultancy Mysteel.
Low Dalian iron ore prices amid weak market fundamentals encouraged feedstock buying from steel mills.
Although the recent rise in port discharge rates and the decline in arrivals have provided some relief to supply-side pressure, port inventories remain at high levels, the Shanghai Metals Market said in a note.
There is no clear inflection point for destocking as of now, and high inventory levels will continue to suppress prices, the Shanghai Metals Market said.
With a lack of government stimulus to address the structural decline in demand, the iron ore market is likely to face headwinds over the next year, ANZ Research said in a note.
Other steelmaking ingredients on the DCE struggled, with coking coal and coke down 1.67 percent and 1.71 percent, respectively.
Market sentiment for coking coal and coke remains subdued due to weak demand for finished steel products and high inventory levels, according to the Shanghai Metals Market.
Most steel benchmarks on the Shanghai Futures Exchange softened. Rebar retreated 0.55 percent, hot-rolled coil shed 0.65 percent and stainless steel lost 0.63 percent, while wire rod firmed 0.18 percent.
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