China, which produces more than half of the world's steel
output, buys about two-thirds of iron ore supplies.
Some analysts believe the expected iron ore demand recovery
has already been priced into the market, while others were
cautious in their outlook particularly for China's real estate
industry.
"Any growth in China's steel demand from a boost in
infrastructure construction is likely to be offset by another
contraction in China's property construction this year,"
Commonwealth Bank of Australia commodities analyst Vivek Dhar
said.
New housing starts in China, which slumped last year, are
likely to remain in contractionary territory, which could drag
dampen iron ore demand, he said.
"Weaker Chinese iron ore demand, combined with a modest
uplift in seaborne iron ore supply, will weigh on iron ore
prices through 2023," Dhar said in a note, predicting prices to
drift lower to $100 a tonne in coming months.
Other Dalian steelmaking inputs also slipped, with
coking coal and coke down 0.5% and 0.8%,
respectively.
Steel benchmarks on the Shanghai Futures Exchange were
subdued, with rebar down 0.2%, while hot-rolled coil was flat. Wire rod edged up 0.3%, but
stainless steel slipped 0.4%.
(Reporting by Enrico Dela Cruz in Manila)
By Enrico Dela Cruz
Feb 14 (Reuters) - Dalian iron ore futures edged lower
on Tuesday, while the steelmaking ingredient's benchmark
contract in Singapore briefly traded below $120 a tonne, with a
guarded outlook for Chinese demand keeping trading volatile.
The most-traded May iron ore on China's Dalian Commodity
Exchange was down 0.4% at 849.50 yuan ($124.68) a
tonne, as of 0300 GMT.
On the Singapore Exchange, iron ore's most-active March
contract slipped by up to 0.4% to $119.90 a tonne,
before bouncing back above $120.
Iron ore prices have rebounded from a November low below $90
a tonne, as China's stepped-up policy support for its ailing
property sector and dismantling of strict COVID-19 restrictions
spurred expectations of demand recovery this year.
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.