SINGAPORE: Dalian iron ore futures rose for a ninth straight session on Tuesday as US President Donald Trump did not immediately impose tariffs on trading partners as previously promised.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.81% higher at 806.5 yuan ($110.89) a metric ton. Earlier in the session, it touched its highest since Dec. 12 at 808 yuan. The benchmark February iron ore on the Singapore Exchange was 1.28% higher at $105.15 a ton, as of 0331 GMT.
Average hot metal output among 247 blast furnace steelmakers in China increased by 1,100 tonnes per day on-week, according to data from Chinese consultancy Mysteel. Chinese stocks opened higher and the yuan strengthened, as Trump’s inaugural policies suggested he will negotiate rather than immediately impose hefty tariffs on trading partners.
Shares of embattled Country Garden, once China’s biggest property developer, jumped as much as 11% as trade resumed after a nine-month suspension, boosting overall sentiment.
Still, the frugal trend that began in China during the pandemic and deepened amid the property market crisis, is intensifying as Gen Z doubles down on saving and shuns government calls to spend. Meanwhile, supply concerns eased as Port Hedland, Australia’s largest bulk-export terminal, reopened early on Monday after a severe tropical cyclone moved away from the region, said ANZ analysts.
Additionally, BHP Group, the world’s largest listed miner, said on Tuesday its iron ore production inched ahead in the December quarter. Other steelmaking ingredients on the DCE rose, with coking coal and coke up 0.48% and 0.37%, respectively. Most steel benchmarks on the Shanghai Futures Exchange declined. Rebar edged down 0.06% and hot-rolled coil dipped 0.17%, wire rod shed 0.17%, while stainless steel gained 0.23%.
Comments