By Enrico Dela Cruz
Feb 8 (Reuters) - Singapore iron ore futures briefly
traded below $120 a tonne on Wednesday, while the Dalian
benchmark swung between losses and gains, as traders reassessed
near-term demand prospects in top steel producer China.
Benchmark March iron ore on the Singapore Exchange fell as much as 2.5% to $118 a tonne, its weakest since Jan. 17.
On China's Dalian Commodity Exchange, the steelmaking
ingredient's most-active May contract was up 0.2% at
844 yuan ($124.52) a tonne, as of 0303 GMT, after earlier
falling 1.1% to 833 yuan.
China's stepped-up policy support for its ailing property
sector and dismantling of strict COVID-19 restrictions had
pushed iron ore and steel prices to multi-month highs in
January.
"Prospects of strong iron ore demand due to China's
reopening and various supportive measures for the property
market are well reflected in the recent price rally in iron
ore," ANZ commodity strategists said in a note.
"Nevertheless, property market indicators are still subdued.
While recent developments are boding well for demand, we expect
iron ore prices to consolidate before seasonal demand kicks in."
Increasing portside iron ore inventory in China, which as of
last week was the biggest since December based on SteelHome
consultancy data, also weighed on prices, analysts said. Meanwhile, iron ore shipments from top suppliers Australia
and Brazil grew by a hefty 3 million tonnes, or 13.7%, to 24.5
million tonnes over Jan. 30-Feb. 5, after a slump in the prior
week, according to Mysteel consultancy data.
The real recovery in Chinese iron ore demand could be seen
in the second quarter, analysts said.
Other Dalian steelmaking inputs were firmer, with coking
coal up 0.7%, while coke gained 1%.
Steel benchmarks were also firmer, with rebar on the
Shanghai Futures Exchange up 0.6%, hot-rolled coil gaining 0.9%, wire rod climbing 0.7%.
Stainless steel edged down 0.1%.
(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu
Sahu)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.