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Dalian iron ore choppy, but up this week
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SGX iron ore set for second weekly fall
(Updates prices)
By Enrico Dela Cruz
Feb 10 (Reuters) - Dalian iron ore futures edged higher
in choppy trade on Friday, while the Singapore benchmark
slipped, as traders curbed their optimism about demand prospects
taking into account the global economic outlook.
The most-traded May iron ore on China's Dalian Commodity
Exchange ended daytime trade 0.8 higher at 863.50 yuan
($126.98) a tonne, reversing early losses. It was up 1.7% for
the week so far.
On the Singapore Exchange, the steelmaking ingredient's
most-active March contract was down 0.1% at $123.90 a
tonne, as of 0710 GMT, and on track for a second straight weekly
fall.
"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 towards 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, lent
support to iron ore prices this week.
"The profitability of steel mills has risen from a low level
(prevailing) 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 gains, as analysts said current 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 fell, with coking coal and coke down 0.4% and 2.2%, respectively.
The Shanghai Futures Exchange's steel benchmarks dropped,
with rebar slipping 0.1%, hot-rolled coil dipping 0.2%, wire rod shedding 1.1%, and stainless
steel down 0.9%.
(Reporting by Enrico Dela Cruz in Manila; editing by Uttaresh.V
and Subhranshu Sahu)
