Dalian iron ore futures edged up slightly on Tuesday, while Singapore iron ore futures fell with the market responding cautiously to China’s latest policy guidelines and as oversupply concerns persisted.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended daytime trade 1% higher, at 840.0 yuan ($117.22) per metric ton.
On the Singapore Exchange, the benchmark September iron ore was down 0.8%at $106.6 a metric ton, as of 0730 GMT, paring gains from the prior session.
China’s factory activity swung to contraction in July, a private sector survey showed on Tuesday, concurring with the official survey on Monday which showed China’s manufacturing activity fell for a fourth straight month in July, spurring hope for fresh stimulus measures.
Still, the absence of details left the market indecisive.
Chinese authorities released additional policy guidelines on Monday but no concrete measures to boost the faltering economy and domestic consumption, leaving investors wanting as dull activity data heightened pressure for officials to act.
“China needs a stimulus bazooka, but it’s firing a scattergun. The glass half-full view of the stimulus measures announced by China’s State Council on Monday is that they are proof that the government recognises the need to offer its spluttering economy broad support,” National Australia Bank said in a note.
Mysteel forecast iron ore prices to fluctuate downward next week when arrivals at 45 major Chinese ports remain at a relatively high level of 23.29 million metric tons, while the steel production curtailment policies roll out.
Steel benchmarks on the Shanghai Futures Exchange were mixed. The most-active rebar contract SRBcv1 rose 0.3%,hot-rolled coil fell 0.1%, wire rod SWRcv1 was relatively unchanged, and stainless steel SHSScv1 was up 0.5%.
Other steelmaking ingredients Dalian coking coal DJMcv1 and coke DCJcv1 jumped 3.1% and 4%, respectively.
Source: Hellenic Shipping News
