SINGAPORE: Iron ore prices ticked up on Monday, following dramatic falls in the prior two months, helped by a slower-than-expected fall in demand from top consumer China, although expectations of a supply glut in the fourth quarter limited gains.
The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 0.59 percent at 679 yuan (USD102.05) a metric ton, as of 0158 GMT. It lost 3.4 percent and 4.3 percent in September and October, respectively. The benchmark December iron ore on the Singapore Exchange was up 0.61 percent to USD91.3 a ton, as of 0148 GMT.
It slipped by 6.1 percent and 2.6 percent in September and October, respectively. Some Chinese steelmakers began equipment maintenance amid weak profitability, while several others in northern regions temporarily trimmed output to improve local air quality.
That sparked expectations of a sharp fall in hot metal output, a gauge of iron ore demand.
But average daily hot metal output among surveyed Chinese steelmakers fell only 0.2 percent from the previous week to around 2.32 million tons as of October 29, data from consultancy Mysteel showed.
Iron ore is skewed to downside risks amid weak fundamentals, but market sentiment has somewhat recovered with prices falling close to the support level, analysts at broker Guoxin Futures said in a note.
That helped ore prices show signs of stabilisation, they added. Coking coal and coke, other steelmaking inputs, slid 0.95 percent and 1.6 percent, respectively, aided by heightened anticipation of a faster supply recovery amid government calls to ensure energy security in winter. Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar shed 0.59 percent, hot-rolled coil dipped 0.57 percent, while stainless steel added 0.34 percent.
Comments