By Enrico Dela Cruz
Feb 10 (Reuters) - Iron ore futures slipped on Friday,
with the Singapore benchmark price set for a second consecutive
weekly fall, as traders re-assessed demand prospects taking into
account the outlook for the global economy and China's recovery.
The most-traded May iron ore on China's Dalian Commodity
Exchange ended morning trade 0.1% lower at 856 yuan
($125.91) a tonne. It was, however, up 1.2% for the week.
On the Singapore Exchange, the steelmaking ingredient's
most-active March contract was down 0.6% at $123.2 a
tonne, as of 0344 GMT. It has fallen 1.3% this week.
"The international macro influence has intensified, and the
domestic resumption of work (after China's Lunar New Year
holidays) is slow, but on the other hand, there is still
confidence in the recovery of the domestic economy," Sinosteel
Futures analysts said in a note.
On Friday, Asia-Pacific stocks headed toward a weekly loss
as investors fretted about the potential for further interest
rate hikes. Improving steel profit margins in China, the world's biggest
producer of the construction and manufacturing material, added
support to iron ore prices this week.
"The profitability of steel mills has risen from a low level
for five consecutive weeks, and the output of molten iron has
risen simultaneously," Sinosteel analysts said.
Rising iron ore stockpiles at Chinese ports, however, could
limit any further price gains. At current levels, analysts said
prices already reflect strong demand prospects due to China's
reopening and supportive measures for ailing property
developers.
China's portside iron ore inventory had climbed to 136.5
million tonnes last week, the biggest since December, SteelHome
consultancy data showed. Other Dalian steelmaking inputs also fell, with coking coal and coke down 1.8% and 2.8%, respectively.
Shanghai Futures Exchange's steel benchmarks dropped, with
rebar falling 1.4%, hot-rolled coil dipping
1%, wire rod shedding 1.2%, and stainless steel down 1.7%.
(Reporting by Enrico Dela Cruz in Manila; editing by
Uttaresh.V)
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