By Enrico Dela Cruz
Feb 16 (Reuters) - Dalian and Singapore iron ore futures
were slightly firmer in another range-bound session on Thursday
as traders continued assessing demand prospects, taking into
account a subdued outlook for property developers in top steel
producer China.
The most-traded May iron ore on China's Dalian Commodity
Exchange was up 0.8% at 871 yuan ($127.26) a tonne, as
of 0307 GMT.
On the Singapore Exchange, the steelmaking ingredient's
benchmark March contract was up 0.3% at $123.60 a
tonne.
Iron ore has rebounded from around $80 a tonne in November,
propped up by optimism around demand as Beijing ramped up policy
support for ailing property developers and discarded its strict
zero-COVID strategy.
Analysts, however, said the expected rebound in Chinese
demand for steel has been slow so far, while indicators pointed
to a property market still needing more stimulative policies to
ensure a long-term recovery.
A sluggish domestic steel demand and elevated costs of
steelmaking ingredients have thus squeezed mills' profitability.
"Overall iron ore prices have been suppressed by weak
profits and a weak recovery in end demand," Sinosteel Futures
analysts said in a note, adding that the market was "still in
the demand verification period".
Adding to the cautiousness, iron ore portside inventory in
China hit a five-month high last week, SteelHome consultancy
data showed. Some data, however, are lending support to ferrous
commodities.
China's new home prices rose in January for the first time
in a year, official data showed on Thursday, as the end of the
zero-COVID regime, favourable property policies and market
expectations for more stimulus measures boosted demand.
On the Dalian exchange, coking coal rose 1.8% and
coke climbed 2%.
Steel benchmarks on the Shanghai Futures Exchange were also
firmer, with rebar gaining 1.2%, hot-rolled coil rising 0.9%, and wire rod advancing 0.6%.
Stainless steel edged up 0.1%.
(Reporting by Enrico Dela Cruz in Manila; editing by
Uttaresh.V)
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