Dalian iron ore futures edged higher on Monday, logging their first monthly rise in four months amid firm near-term demand in top consumer China, although a protracted property crisis kept gains in check.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) TIO1! ended daytime trade 0.21% higher at 715.5 yuan ($99.88) a metric ton.
The contract gained 2.06% in June.
The benchmark July iron ore (SZZFN5) on the Singapore Exchange lost 0.16% to $94.4 a ton as of 0746 GMT, falling 1.3% this month.
Hot metal output, a gauge of iron ore demand, remained firm at around 2.42 million tons as of June 27, per data from consultancy Mysteel.
Meanwhile, the average blast furnace capacity utilisation rate rose 0.04 percentage points to 90.83% in the June 20-26 period, Mysteel said.
Non-manufacturing PMI data, which includes services and construction, showed growth from 50.3 to 50.5.
However, manufacturing activity in China shrank for a third straight month in June, albeit at a slower pace.
Weak domestic demand, coupled with a prolonged property crisis, has left factory owners sitting on inventory as they wait to see whether Beijing can ease trade tensions with the U.S. and the European Union, analysts said.
The U.S. dollar eased as investors priced in potential interest rate cuts after Federal Reserve Chair Jerome Powell signalled in his testimony that cuts were likely if inflation remained in check despite the tariffs.
Meanwhile, reports that President Donald Trump had urged Powell to resign added further pressure.
A weaker greenback makes dollar-denominated assets cheaper for holders of other currencies.
Other steelmaking ingredients on the DCE dipped, with coking coal NYMEX:ACT1! and coke (DCJcv1) down 1.08% and 0.46%, respectively.
Steel benchmarks on the Shanghai Futures Exchange mostly increased. Rebar RBF1! strengthened 0.23%, hot-rolled coil EHR1! rose 0.13%, stainless steel HRC1! gained 0.16% and wire rod (SWRcv1) dipped 0.09%.
Source: Reuters