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Iron ore at one-week high
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Ferrous market broadly on the rise
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Some EAF-based steelmakers in Guangdong cut output
(Updates prices and adds bullets)
BEIJING, April 18 (Reuters) - Dalian and Singapore iron
ore futures climbed to one-week highs on Tuesday, as
better-than-expected economic growth in China for the March
quarter boosted investor sentiment.
China's gross domestic product grew 4.5% year-on-year,
faster than 2.9% in the previous quarter, and beating analyst
forecasts for a 4.0% expansion.
The most-traded September iron ore on the Dalian Commodity
Exchange (DCE) ended daytime trading 2.08% higher at
784 yuan ($114.04)a tonne.
On the Singapore Exchange, the benchmark May iron ore was up 0.75% at $117.65 a tonne, as of 0710 GMT, the
highest since April 12.
"Solid demand provided certain support to iron ore prices,
but there are downside risks stemming from thin steel margins.
Also, daily hot metal output may fall after having hit a peak in
March," analysts at Sinosteel Futures said in a note.
Weather, which affects the pace of shipments, will not have
much effect on the overall supply, they added.
Iron ore prices gained some ground last week on worries
about potential supply disruptions in Australia due to a
tropical cyclone. However, the cyclone spared some populated
areas including Port Hedland, the world's largest iron ore
export hub.
The steelmaking ingredient had been facing downward pressure
since late March, partly due to weaker-than-expected steel
demand during China's peak construction activity season.
Other steelmaking ingredients including coking coal and coke
also recorded gains on Tuesday. Coking coal rose 2.97%
and coke gained 2.55%.
Rebar on the Shanghai Futures Exchange climbed 1.1%
to 3,950 yuan a tonne, hot-rolled coil moved up 1%,
wire rod advanced 0.82%, and stainless steel rose 0.06%.
Around 78% of the surveyed electric arc furnace-based
steelmakers in South China's Guangdong province reduced their
production as of April 17 due to losses, according to
consultancy Mysteel.
($1 = 6.8748 Chinese yuan) (Reporting by Amy Lv and Dominique Patton in Beijing; Editing by Subhranshu Sahu and Sonia Cheema)
