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Dalian iron ore ends daytime session down 2.2%
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SGX iron ore slumps, support holds near $120/T
(Updates prices)
By Enrico Dela Cruz
Feb 13 (Reuters) - Chinese ferrous futures fell on
Monday, as mounting steel stocks and rising portside iron ore
inventory indicated a slow recovery in demand, even as latest
indicators pointed to a rebounding economy.
The most-traded May iron ore on China's Dalian Commodity
Exchange ended daytime trade 2.2% lower at 841.50 yuan
($123.23) a tonne.
On the Singapore Exchange, the steelmaking ingredient's
benchmark March contract was down 3.5% at $120.35 a
tonne, as of 0702 GMT.
On the Shanghai Futures Exchange, rebar shed 1.6%,
while other steel benchmarks also dropped. Hot-rolled coil dipped 1.4%, wire rod lost 1.7%, and
stainless steel slipped 0.5%.
"Industrial metals markets will need to wait for February
and March economic data to get a true sense on the health of the
Chinese economy," Navigate Commodities Managing Director Atilla
Widnell said.
Traders were cautious despite data showing new bank loans in
China jumped more than expected to a record 4.9 trillion yuan
($717.21 billion) in January, while new home sales in 16 Chinese
cities rose for the second straight week.
"The profits of steel mills have not improved," Huatai Futures analysts said in a note. "The continuous increase in inventory will cause short-term adjustments in finished product prices." Steel inventories held by Chinese traders, which have been steadily rising since late December, increased by 1.5 million tonnes over Feb. 3-9, according to Mysteel consultancy's latest stocks survey. Meanwhile, portside iron ore inventory climbed last week to 138.5 million tonnes, the highest since mid-September, SteelHome consultancy data showed. Other Dalian steelmaking inputs were also weaker, with coking coal down 2.9%, while coke dropped 2.7%. "Higher-frequency construction steel trading volumes alluded to emerging shoots of a fragile recovery in steel demand last week," Widnell said. "If this trend extends for a second consecutive week, this could also reignite the optimism around the reopening narrative." (Reporting by Enrico Dela Cruz in Manila; editing by Uttaresh.V and Subhranshu Sahu)
