Dalian iron ore futures ended relatively unchanged on Monday, as property sector concerns erased earlier gains, whileSingapore iron ore futures retreated.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended daytime trade 0.1% higher at 845.0 yuan ($117.45) per metric ton.
On the Singapore Exchange, the benchmark August iron ore fell 0.8% at $112.7a metric ton, as of 0730 GMT, down from a three-month high in the previous session.
China’s state planner on Monday unveiled measures that seek to promote and spur private investment in some infrastructure sectors, adding it will strengthen financing support for private projects.
Last Friday, China’s cabinet approved guidelines for transforming underdeveloped areas in megacities.
On the production front, a total of 13 blast furnaces in Tangshan province of China, accounting for about 58,000 metric tons, will be under maintenance from July 21 to July 31, analysts at Mysteel said in a note, up from seven last Friday.
Steel benchmarks on the Shanghai Futures Exchange moved up. The most-active rebar contract on the Shanghai Futures Exchange SRBcv1 strengthened by 0.4%, hot-rolled coil increased by 0.5%, wire rod jumped 1.8% and stainless steel SHSScv1 rose by 1.2%.
Still, China is struggling to revive foreign investment in its financially battered cities and provinces.
Stocks and bonds in China’s real estate industry fell to around eight-month lows on Monday as repayment worries at two of the country’s biggest developers plunged confidence in the sector deeper into crisis.
Likewise, steel demand concerns lingered.
“Steel demand remained soft as property indicators deteriorated and lean seasonal demand leaves little hope of a favorable shift,” analysts at ANZ investment bank said in a note.
“The profitability of Chinese steel mills has turned negative, limiting the chances of any immediate increase in steel production,” ANZ added.
Steelmaking ingredients like Dalian coking coal DJMcv1 and coke DCJcv1 plunged 2.2% and 0.8%, respectively.
Source: Hellenic Shipping News
