SINGAPORE: Dalian iron ore futures prices edged up on Tuesday, as stronger steel exports and hopes of further fiscal stimulus from Beijing continued to support prices, although softer overall trade data clouded top consumer China’s demand prospects and capped gains.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.82% higher at 801.0 yuan ($112.80) a metric ton, as of 0230 GMT.
The benchmark November iron ore on the Singapore Exchange was 0.04% lower at $107.55 a ton. “Iron ore was steady as strong Chinese steel exports mitigated ongoing weakness in the property sector,” said ANZ analysts. September exports hit their highest level since 2016, reaching 10.2 million tons, with year-to-date exports up 21% year-on-year, ANZ added, citing customs data on Monday.
However, China’s overall export growth slowed sharply in September, while imports also unexpectedly decelerated, the customs data showed, undershooting forecasts by big margins and suggesting manufacturers are slashing prices to move inventory ahead of tariffs from several trade partners.
While stronger-than-expected external demand has been a key supporting factor for China’s manufacturing sector through the year, September’s trade data shows export demand may be softening, while sluggish domestic demand continues to drag imports, said ING analysts. “Although the process continues to take longer than what many market participants hope for, we continue to expect a solid fiscal stimulus push.
Comments
Comments are closed.