Iron ore rangebound ahead of annual parliamentary meeting in China

BEIJING: Iron ore prices moved in a tight range on Wednesday, as investors and traders exercised caution ahead of the upcoming annual parliamentary meeting in the world’s second-largest economy from March 5.

The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade up 0.4 percent at 752 yuan (USD108.73) a metric ton.

The benchmark April iron ore on the Singapore Exchange fell 0.26 percent at USD98.75 a ton as of 0700 GMT.

Investors were closely monitoring cues for China’s macro economic and industrial policy trend to gauge the demand outlook for steel and its ingredients.

Most analysts expect Premier Li Qiang’s report on March 5, the first day of the gathering, to announce a growth target of 4.5 percent-5 percent, while pledging to boost both consumption and investment in high-tech industries.

Beijing will also release its 15th five-year plan, which sets strategic objectives and policies for 2026-2030.

Hopes for more forceful stimulus became more intense after China’s factory activity contracted for the second consecutive month in February, an official survey showed on Wednesday.

Other steelmaking ingredients also moved sideways, with coking coal down 0.23 percent and coke up 0.66 percent.

Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar added 0.13 percent, hot-rolled coil was flat, wire rod dipped 0.63 percent and stainless steel eased 0.04 percent.