2023-05-09 14:41:06
© Reuters. Iron ore terminal in port of Dalian, China 09/21/2018 REUTERS/Muyu Xu
By Enrico Dela Cruz
(Reuters) – Dalian Stock Exchange futures extended gains on Tuesday on hopes of further support measures for China’s economy, but the challenging outlook for the world’s biggest steel producer weighed on the benchmark price. of the steel ingredient in Singapore.
September’s most-traded iron ore on China’s Dalian Commodity Exchange ended daytime trading up 1.3% at RMB 714 ($103.30) a tonne. Previously, the contract touched 727.50 yuan, the highest level since April 27.
On the Singapore Exchange, however, the iron ore benchmark for June fell 3.4% to $101.90 a tonne, after an intraday gain of 7% on Monday.
Benchmarks of Dalian and Singapore trading in opposite directions mirrored traders’ mixed sentiments, with some betting on fresh stimulus to support China’s economy, while others focused on an uneven recovery in the country despite the lifting of tough Covid restrictions.
China’s dismal April trade data highlighted this shaky recovery, with exports growing at a slower pace compared to March.
The data also showed China’s iron ore imports fell 9.8% in April from March, but rose 5.1% from the same April last year, as buyers anticipated strong demand during the peak season. construction, although the opposite happened.
“We expect commodity markets to remain reactive to any signs of policy support. This should keep iron ore prices volatile in the near term,” Commonwealth Bank of Australia analyst Vivek Dhar said in a note.
(Reporting by Enrico Dela Cruz in Manila)
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