Latest News

Iron ore retreats on firmer supply, softer steel outlook

Iron ore futures rates pulled back on Thursday as supply of the essential steelmaking component remained firm amid a weaker steel market outlook, although fresh stimulus for leading customer China's home sector minimal losses.

The most-traded January iron ore agreement on China's Dalian Product Exchange (DCE) ended morning trade 1.44%. lower at 755.5 yuan ($ 104.32) a metric ton.

The benchmark December iron ore on the Singapore. Exchange was 1.21% lower at $99.35 a heap, since 0345 GMT.

Iron ore prices fell as supply continues to grow, stated ANZ. experts in a note.

Shipments from Australia's leading Port Hedland terminal. amounted to 45.6 million tons in October, bringing this year's. overall to the highest level for this duration in four years, stated. ANZ, adding that the Australian federal government anticipates exports to. increase 1.9% to 908 million heaps in 2024.

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

The build in stockpiles comes amid portside traders' passive. restocking, as the iron ore market continuously weakens, Mysteel. stated.

For Chinese steelmakers, this year has actually been a tough year,. as their earnings were regularly squeezed by flagging steel. rates in the middle of China's drawn-out property depression.

China revealed tax incentives on home and land deals. on Wednesday, intending to support the crisis-hit property market. by increasing demand and reducing developers' monetary. problems.

The property market remains China's largest steel customer. despite the sector's falling share in the middle of the extended crisis. considering that 2021.

Other steelmaking ingredients on the DCE pared the previous. session's gains, with coking coal and coke. down 1.51% and 1.85%, respectively.

Steel standards on the Shanghai Futures Exchange lost. ground. Rebar and hot-rolled coil shed about. 0.95%, wire rod ticked down 0.36% and stainless-steel. declined 0.86%.

(source: Reuters)