Iron ore futures prices rose on Monday after six days of losses, as hopes of fresh stimulus from top consumer China following a batch of tepid economic data lifted market sentiment
The most-traded January iron ore contract on Chinal’s Dalian Commodity Exchange (DCE) ended daytime trade 0.44% higher at 685 yuan ($96.35) a metric ton
Earlier in the session, the contract had fallen as low as 662.0 yuan, its weakest since Aug. 21. 2023.
The benchmark October iron ore SZZFV4 on the Singapore Exchange was down 0.22% at $91.5 a ton, as of 0705 GMT.
China’s exports likely grew at the slowest pace in four months in August, as cooling global demand and mounting trade barriers threaten to dim a bright spot in the world’s second- largest economy
During the same period, the country’s consumer inflation accelerated to the fastest pace in half a year, but the uptick was due more to higher food costs from weather disruptions than a recovery in domestic demand as producer price deflation worsened.
A sputtering start in the second half is mounting pressure on the world’s second-largest economy to roll out more policies amid a prolonged housing downturn, persistent joblessness and debt woes
Analysts believe the economy could regain some ground in the rest of the year, as fiscal spending is set to ramp up and exports retain some resilience, although significant risks remain given escalating trade tensions and looming tariff hikes
Separately, China will incorporate key emission industries, including as steel, into the national carbon market by the end of this year, said Huang Runqiu, the country’s minister of ecology and environment, according to state-backed media on Saturday
Other steelmaking ingredients on the DCE were weaker, with coking coal DJMcv1 and coke DCJcv1 down 0.81% and 1.33%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange, however, posted gains. Wire rod SWRcv1 climbed 2.08%, hot-rolled coil SHHCcv1 strengthened 0.87%, rebar SRBcv1 ticked 0.36% higher, although stainless steel SHSScv1 shed 1.45%
Source: Reuters (Reporting by Gabrielle Ng: Editing by Sonia Cheema and Sherry Jacob- Phillips)
