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Iron ore wanders sideways as strong steel outlook offsets soft China information

Rates of iron ore futures swept within a narrow range on Thursday, as traders weighed stronger prospects for China's steel market versus weaker economic data from the world's leading customer.

The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) ended daytime trade flat at 786.5 yuan ($ 108.54) a metric lot, snapping a three-day winning streak.

The benchmark December iron ore on the Singapore Exchange was down 0.34% at $103.45 a ton, as of 0708 GMT.

Steel benchmarks on the Shanghai Futures Exchange, however, made headway. Rebar and wire rod enhanced about 0.4%, hot-rolled coil edged 0.26%. higher, and stainless-steel advanced nearly 0.7%.

The steel sector has shown indications of enhancement in recent. months, ANZ experts said in a note.

Strong exports and falling stocks have actually assisted, while. gains in steel output have continued through November.

Cumulative losses in China's steel industry diminished to 23. billion yuan in January-October from 34 billion yuan over the. first nine months of the year, ANZ said, mentioning data from the. National Bureau of Stats.

Improved steel mill revenues contributed to the improved tone,. with the marketplace focused on the Chinese Politburo meeting due. early in December and the Central Economic Work Conference. mid-December, Westpac experts said.

China is both the world's leading customer and manufacturer of the. metal.

Still, the nation's commercial earnings extended declines in. October to fall 10% year-on-year, weighed down by deflation. pressures and soft need in its damaging economy.

Fresh headwinds from higher U.S. tariffs could likewise threaten. China's commercial sector next year, decreasing export revenues.

Chinese state media on Tuesday alerted U.S. President-elect. Donald Trump his pledge to impose extra tariffs on China's. imports could drag the world's top two economies into a mutually. damaging tariff war.

Other steelmaking active ingredients on the DCE extended declines,. with coking coal and coke down 0.84% and. 1.79%, respectively.

(source: Reuters)