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SGX iron ore hits three-week low below $120/T
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Dalian iron ore edges higher in choppy trade
(Updates prices)
By Enrico Dela Cruz
Feb 8 (Reuters) - Iron ore futures swung back and forth
on Wednesday, with the Singapore benchmark briefly trading below
$120 a tonne, as traders reassessed near-term demand prospects
in top steel producer China.
Benchmark March iron ore on the Singapore Exchange was up 0.1% at $121.10 a tonne, as of 0715 GMT, after falling
2.5% to $118 a tonne earlier in the session, its weakest since
Jan. 17.
On China's Dalian Commodity Exchange, the steelmaking
ingredient's most-active May contract ended daytime
trade 0.7% higher at 848 yuan ($124.99)a tonne. It earlier
dropped 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."
Iron ore was supported after the world's largest miner BHP
Group said it had suspended its Western Australian iron
ore operations for a day after a worker was struck by a train at
its Port Hedland facility.
But increasing portside iron ore inventory in China, which
as of last week was the biggest since December based on
SteelHome consultancy data, also kept trading subdued. 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 1.2%, while coke gained 2%.
Steel benchmarks also gained, with rebar on the Shanghai
Futures Exchange up 1%, hot-rolled coil gaining 1.2%, and wire rod climbing 0.4%. Stainless
steel slipped 0.4%.
(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu
Sahu and Sherry Jacob-Phillips)
