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Iron ore strikes 3-week short on firmer supply, softer steel outlook

Iron ore futures rates was up to a threeweek low on Thursday, as supply of the key steelmaking active ingredient stayed firm amid a weaker steel market outlook, although fresh stimulus measures by leading customer China for its residential or commercial property sector restricted the losses.

The most-traded January iron ore agreement on China's Dalian Commodity Exchange (DCE) ended daytime trade 1.37%. lower at 756.0 yuan ($ 104.38) a metric ton. The contract earlier. in the day strike its weakest level given that Oct. 24 at 751.5 yuan.

The benchmark December iron ore on the Singapore. Exchange was 1.81% lower at $98.72 a heap, since 0714 GMT.

Shipments from Australia's leading Port Hedland terminal. totalled 45.6 million loads in October, bringing this year's. overall to the greatest level for this period in 4 years, ANZ. experts stated in a note.

The Australian federal government expects exports to increase 1.9%. to 908 million lots in 2024, ANZ said.

Mounting stocks of the steelmaking material at China's major. ports stands in stark contrast to the underperformance of. imported iron ore rates and need because the start of this. year, said Chinese consultancy Mysteel.

The increase in stockpiles comes amid passive restocking by. portside traders as the iron ore market deteriorates even more, Mysteel. said.

For Chinese steelmakers, this year has actually been tough as. flagging steel costs often squeeze profits in the middle of a. protracted downturn in the residential or commercial property sector, Mysteel said.

China unveiled tax rewards on home and land transactions. on Wednesday, aiming to support its crisis-hit home market,. which stays the nation's biggest steel customer.

Other steelmaking ingredients on the DCE fell, with coking. coal and coke down 1.59% and 1.31%,. respectively.

Steel criteria on the Shanghai Futures Exchange lost. ground. Rebar dropped around 0.9%, hot-rolled coil. shed nearly 1%, wire rod ticked down nearly. 0.3% and stainless-steel decreased about 0.8%.

(source: Reuters)