Dalian iron ore futures prices pared earlier losses on Monday, buoyed by better-than-expected industrial data and hopes of stimulus measures from top consumer China this week, although adverse weather conditions capped gains.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.06% higher at 780.5 yuan ($107.59) a metric ton.
The benchmark August iron ore SZZFQ4 on the Singapore Exchange, however, was 0.26% lower at $101.9 a ton, as of 0720 GMT.
China’s industrial profits grew at a faster clip in June, official data showed on Saturday, even as businesses were grappling with a downshift in consumer sentiment amid a shaky economic recovery.
The robust data contrasted with a slowing economy, which missed forecasts in the second quarter as the consumer sector was downbeat amid job market woes and a protracted housing downturn.
Analysts expect the government to implement another round of property-supporting policy measures after a meeting of the Politburo, a top decision-making body of the ruling Communist Party, expected to take place this week.
China’s state planner on Monday said it had issued 500 million yuan ($69 million) from the central budget to support the recovery of five provinces following a typhoon and torrential rains.
More than 27,000 people in China were evacuated and hundreds of factories were ordered to suspend production as Typhoon Gaemi brought heavy rains, state media reported on Saturday.
Forecasters warned that the most powerful storm to hit the country this year could affect as many as 10 provinces.
Most steel benchmarks on the Shanghai Futures Exchange posted losses. Rebar SRBcv1 shed nearly 0.4%, hot-rolled coil SHHCcv1 lost almost 1.2%, wire rod SWRcv1 fell about 0.7%, while stainless steel SHSScv1 gained around 0.7%.
Other steelmaking ingredients on the DCE lost ground, with coking coal DJMcv1 and coke DCJcv1 down 0.67% and 0.89%, respectively.
Source: Reuters