SINGAPORE: Iron ore futures prices were mixed on Tuesday, as traders weighed concerns over China’s steel demand outlook following its latest batch of trade data against lower global supply.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.36% lower at 684 yuan ($96.12) a metric ton, as of 0250 GMT.
The benchmark October iron ore on the Singapore Exchange, however, was 1.52% higher at $92.0 a ton.
China’s exports grew at their fastest pace in nearly 1-1/2 years in August, suggesting that manufacturers were rushing out orders ahead of tariffs expected from a growing number of trade partners, while imports disappointed amid weak domestic demand.
The mixed trade data highlights the challenge facing Beijing as policymakers try to bolster overall growth without becoming too reliant on exports, especially given the tightening of consumers’ purse strings.
Commodity imports to China were slightly weaker on a seasonal basis in August as processors contend with subdued economic activity. However, demand may be improving as industries ramp up activity ahead of the northern winter, said ANZ analysts in a note.
Comments