BEIJING: Iron ore futures were mixed on Tuesday, with the Dalian benchmark extending losses amid lingering concerns over near-term demand in top consumer China, while hopes of US Federal Reserve cutting interest rates underpinned the Singapore benchmark.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.94% lower at 844 yuan ($116.48) a metric ton as of 0245 GMT, after falling to as low as 839 yuan a ton earlier the session.
Diminishing steel demand dampened mills’ buying appetite for iron ore, with transaction volumes at major ports sliding by 17% from the previous session to 735,000 tons on Monday, data from consultancy Mysteel showed.
Prices of the key steelmaking feedstock have lost more than 6% from last week, even as more regional stimulus for the property market was unveiled to spur the struggling sector.
The benchmark July iron ore on the Singapore Exchange was 0.18% higher at $110.85 a ton, after softer-than-expected economic data strengthened expectations of a Fed rate cut later this year.
Other steelmaking ingredients on the DCE receded, with coking coal and coke down 0.71% and 0.42%, respectively. Steel benchmarks on the Shanghai Futures Exchange retreated further.
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