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Dalian, SGX iron ore futures slump to 3-week lows
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China iron ore port stocks hit highest since Dec
(Updates prices)
By Enrico Dela Cruz
Feb 7 (Reuters) - Dalian and Singapore iron ore futures
fell to three-week lows on Tuesday, as rising portside inventory
in China weighed on prices already pressured by weak demand
prospects.
The most-traded iron ore, for May delivery, on China's
Dalian Commodity Exchange ended daytime trade 0.7%
lower at 840.50 yuan ($123.86) a tonne. It earlier dropped to
828.50 yuan, its lowest since Jan. 17.
On the Singapore Exchange, iron ore's benchmark March
contract fell as much as 2.4% to $120.30 a tonne, its
weakest since Jan. 18.
Imported iron ore stocked at Chinese ports was estimated at
136.5 million tonnes as of Feb. 3, the biggest since early
December, SteelHome consultancy data showed. "Rising iron ore inventory and steel products are reflecting
weaker Chinese demand post the (Lunar New Year) holiday, with
reopening now expected to impact the consumer more than
construction/housing activity," Westpac analysts said in a note.
Policymakers in top steel producer China plan to further
boost support for domestic demand this year but are likely to
stop short of splashing out big on direct consumer subsidies,
Reuters reported, citing sources close to policy discussions.
Meanwhile, analysts said latest Chinese property market
indicators showed a slow recovery of the sector that accounts
for a sizeable portion of domestic steel demand, despite
government support for developers.
"Top 30 cities property sales were massively lower compared
to January last year and also lower than the same CNY holiday
period in 2022. January existing home sales in Shanghai were
also poor," commodities broker Marex said in a note.
Other Dalian steelmaking inputs rose, with coking coal up 1.1%, while coke gained 0.6%.
Steel benchmarks fell, with rebar on the Shanghai Futures
Exchange down 0.5%, hot-rolled coil slipping
0.2%, and wire rod shedding 0.8%. Stainless steel dipped 0.4%.
(Reporting by Enrico Dela Cruz in Manila; Editing by Savio
D'Souza and Subhranshu Sahu)
