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Dalian iron ore set for first weekly fall in six
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SGX iron ore edges up, but stays below $130/tonne
(Updates prices)
By Enrico Dela Cruz
March 17 (Reuters) - Dalian and Singapore iron ore
futures rose slightly on Friday as concerns over 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 ended daytime trade 0.4% higher at 915 yuan
($133.10) a tonne. It was, however, headed for its first weekly
loss in six weeks, having fallen more than 2% from last week.
On the Singapore Exchange, the steelmaking ingredient's
benchmark April contract was up 0.5% at $129.85 a
tonne, as of 0745 GMT. It hit $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 also improved as financial markets
rebounded following Thursday's risk aversion triggered by a
brewing banking crisis. Rebar on the Shanghai Futures Exchange edged up
0.2% 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 added 0.1%, wire rod dipped 0.6%, and stainless steel was virtually flat.
On the Dalian exchange, coking coal slipped 0.4%,
while coke was little changed.
(Reporting by Enrico Dela Cruz; Editing by Rashmi Aich and
Subhranshu Sahu)
