SINGAPORE: Iron ore futures rose for the first time in three sessions on Tuesday as trading resumed in top buyer China after a long holiday weekend, with investors awaiting clarity on the prospects of a resolution to the Iran war.
Prices were also underpinned by demand hopes following calls from Beijing to accelerate energy-related construction projects. The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) climbed 0.5percent to 805 yuan (USD117.03) a metric ton by 0243 GMT.
The benchmark May iron ore on the Singapore Exchange was 0.25percent higher at USD106.9 a ton. Iran said on Monday it wanted a lasting end to the war with the US and Israel, and pushed back against pressure to reopen the Strait of Hormuz, while US President Donald Trump warned the country could be “taken out” if it did not meet his Tuesday night deadline to reach a deal. In response to global energy shocks triggered by the Iran war, Chinese President Xi Jinping has called for accelerated planning and construction of a new energy system to safeguard the country’s energy security.
This will include construction of the world’s largest hydropower dam on the eastern rim of the Tibetan Plateau, supporting prices of construction materials and industrials, such as iron ore.
Gains in iron ore prices were limited by high inventories and anti-dumping measures on Chinese steel productions. Iron ore inventories at major Chinese ports increased 0.65percent week-on-week, data from consultancy Steelhome showed. The increase came despite rising hot metal output, highlighting difficulties in inventory drawdown and weakening fundamental support.
Vietnam has imposed a temporary anti-dumping levy of up to 27.83percent on some Chinese hot-rolled coil steel products starting April 17, its trade ministry said.
Other steelmaking ingredients on the DCE were mixed, with coking coal down 0.45percent and coke up 0.33percent. Most steel benchmarks on the Shanghai Futures Exchange were negative. Rebar was little changed, hot-rolled coil lost 0.15percent and wire rod retreated 0.27percent, while stainless steel gained 0.21percent.
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