(Changes reporting credit at the end of story)
By Enrico Dela Cruz
March 17 (Reuters) - Dalian and Singapore iron ore
futures were slightly up on Friday as concerns over a brewing
banking turmoil eased, though a potential limit on steel
production in China this year capped further gains.
The most-traded May iron ore on China's Dalian Commodity
Exchange was up 0.8% at 918 yuan a tonne, as of 0312
GMT, after earlier swinging between losses and gains. It has
retreated from Tuesday's contract high of 936 yuan.
On the Singapore Exchange, the steelmaking ingredient's
benchmark April contract edged up 0.2% to $129.40 a
tonne, after falling to $126.85 a tonne earlier in the session,
its weakest since March 9.
"The full weight of (Chinese regulators') intervention in
the iron ore market is becoming more obvious," Westpac analysts
said in a note.
Top steel producer China will again cut annual crude steel
production in 2023, making it the third consecutive year that
the government has mandated an output limit in line with its
emission reduction programme, Bloomberg News reported on
Wednesday.
The report, which is yet to be officially confirmed, comes
as Chinese regulators have repeatedly warned against excessive
price speculation on iron ore and hoarding.
Prices of the steelmaking ingredient have soared since late
last year as China's move to discard its zero-COVID policy and
roll out supportive measures for the struggling domestic
property developers brightened demand prospects for steel.
Overall sentiment improved as financial markets rebounded
following Thursday's risk aversion triggered by a brewing
banking crisis. Rebar on the Shanghai Futures Exchange edged up
0.5% following a two-day correction, having scaled a nine-month
high on Tuesday as China has entered its peak spring
construction season.
Hot-rolled coil rose 0.4%, wire rod dipped 0.4%, while stainless steel gained 0.4%.
On the Dalian exchange, coking coal and coke both edged up 0.7%.
(Reporting by Enrico Dela Cruz; Editing by Rashmi Aich)
