Iron ore futures held within a narrow range on Thursday as upbeat industry data from top consumer China lifted sentiment, but gains were capped as investors awaited cues on further stimulus from Beijing next week.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.38% lower at 781.5 yuan ($109.75) a metric ton, after hitting a intraday high of 789.5 yuan a ton earlier in the session.
The benchmark December iron ore on the Singapore Exchange nudged up 0.05% to $103.75a ton, as of 0802GMT, after touching a intraday high at $104.35 a ton.
Both benchmarks ticked higher earlier in the session after official data showed China’s manufacturing activity expanded for the first time in six months in October, indicating that Beijing’s latest stimulus measures are helping the battered economy turn a corner.
However, the gains were pared as investors exercised caution over more stimulus measures next week, when China’s top legislative body, the National People’s Congress (NPC) Standing Committee, will meet.
Also blurring the outlook were mixed fundamentals as “supply pressure is likely to persist with more shipments arriving, while demand for the key steelmaking ingredient held firm with steelmakers ramping up production when they could make money”, analysts at Huatai Futures said.
Other steelmaking ingredients on the DCE posted further losses, with coking coal and coke down 1.38% and 1.29%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were weaker. Rebar SRBcv1 dipped 0.35%,hot-rolled coil SHHCcv1 edged down0.14%, wire rod SWRcv1 shed 1.37% and stainless steel SHSScv1 lost 0.73%.
Source: Reuters