Iron ore futures inched higher on Monday, boosted by top consumer China’s upbeat data, although demand concerns caused by the intensifying trade conflict between Washington and Beijing lingered, curbing gains.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) TIO1! ended daytime trade 0.28% higher at 706 yuan ($96.68) a metric ton.
The benchmark May iron ore (SZZFK5) on the Singapore Exchange was up 0.6% to $97.7 a ton, as of 0737 GMT.
New bank loans in China rebounded more than expected in March, recovering from a sharp drop the previous month, as policymakers pledge to ramp up stimulus to buttress the world’s second-largest economy against an escalating trade war with the U.S.
But the better-than-expected loan data kept stimulus hopes in check.
“The better the data, the less urgency there will be to unveil more stimulus measures,” said a Chinese analyst, referring to the loan data and requesting anonymity as he is not authorised to speak to media.
Lower-than-expected imports last month, coupled with firm near-term demand, supported prices of the key steelmaking ingredient.
China’s iron ore imports dipped in March from the previous month to a 20-month low, defying analysts’ expectations of a rebound as weather-related supply disruptions eased.
Average daily hot metal output, typically used to gauge iron ore demand, rose for a seventh consecutive week to a 17-month high of 2.4 million tons as of April 10, a survey from consultancy Mysteel showed.
But analysts cautioned hot metal output may peak in the coming two weeks before retreating dragged by seasonally slowing demand.
Other steelmaking ingredients on the DCE rose, with coking coal NYMEX:ACT1! and coke (DCJcv1) up 0.84% and 1.21%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange ticked higher. Rebar RBF1! was flat, hot-rolled coil EHR1! advanced 0.22%, stainless steel HRC1! climbed 0.87% and wire rod (SWRcv1) inched up 0.33%.
Source: Reuters