Dalian iron ore eases on sluggish China demand, stimulus eyed


Dalian iron ore futures prices fell on Tuesday, weighed down by concerns about demand in top consumer China, although investors hoped for more stimulus from a key meeting next week.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade 0.5% lower at 834 yuan ($114.70) a metric ton.

The benchmark August iron ore SZZFQ4 on the Singapore Exchange was up 1% at $109.4 a ton.

“The market is hopeful that China’s Third Plenum will reveal further stimulus measures,” ANZ Research said in a note.

Economists and investors are awaiting for the Third Plenum to be held on July 15-18 with hundreds of China’s top Communist Party officials gathering in Beijing for the five-yearly meeting.

Other steelmaking ingredients on the DCE were mixed, with coking coal DJMcv1 up 0.3% and coke DCJcv1 down 0.2%.

Steel benchmarks on the Shanghai Futures Exchange trended down. Rebar SRBcv1 eased 0.5%, hot-rolled coil SHHCcv1 slipped 0.6%, wire rod SWRcv1 shed 0.6%, and stainless steel SHSScv1 lost 1.7%.

Source: Reuters