MANILA: Dalian and Singapore iron ore futures were slightly firmer in another range-bound session on Thursday as traders continued assessing demand prospects, taking into account a subdued outlook for property developers in top steel producer China.

The most-traded May iron ore on China’s Dalian Commodity Exchange was up 0.8% at 871 yuan ($127.26) a tonne, as of 0307 GMT. On the Singapore Exchange, the steelmaking ingredient’s benchmark March contract was up 0.3% at $123.60 a tonne.

Iron ore has rebounded from around $80 a tonne in November, propped up by optimism around demand as Beijing ramped up policy support for ailing property developers and discarded its strict zero-COVID strategy.

Analysts, however, said the expected rebound in Chinese demand for steel has been slow so far, while indicators pointed to a property market still needing more stimulative policies to ensure a long-term recovery.

A sluggish domestic steel demand and elevated costs of steelmaking ingredients have thus squeezed mills’ profitability. “Overall iron ore prices have been suppressed by weak profits and a weak recovery in end demand,” Sinosteel Futures analysts said in a note, adding that the market was “still in the demand verification period”.

Adding to the cautiousness, iron ore portside inventory in China hit a five-month high last week, SteelHome consultancy data showed. Some data, however, are lending support to ferrous commodities.

China’s new home prices rose in January for the first time in a year, official data showed on Thursday, as the end of the zero-COVID regime, favourable property policies and market expectations for more stimulus measures boosted demand.

On the Dalian exchange, coking coal rose 1.8% and coke climbed 2%. Steel benchmarks on the Shanghai Futures Exchange were also firmer, with rebar gaining 1.2%, hot-rolled coil rising 0.9%, and wire rod advancing 0.6%. Stainless steel edged up 0.1%.