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Iron ore prices rangebound due to slow demand and ahead Sino-US trade talks

Investors weighed the prospects of an easing in Sino-U.S. tensions with the seasonal weakness in demand from China, which is the top consumer.

The September contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 0.57% lower, at 696 Yuan ($96.06), a metric tonne. This marks a 1.2% drop this week.

As of 0740 GMT the benchmark June iron ore traded on Singapore Exchange was 0.65% higher at $97.15 per ton, bringing its overall increase this week to 1.5%.

The United States announced details of a new trading agreement with Britain. President Donald Trump predicted that the punitive U.S. Tariffs of 145% on Beijing would also likely be reduced, the latest indication of a softer tone between the superpowers.

Analysts and traders remained cautious ahead of the Sino - U.S. discussions scheduled for this weekend.

Analysts said that while near-term ore consumption remained strong, signs of a weakening steel downstream consumption threatened to limit any potential upside.

A survey by Mysteel revealed that the average daily hot metal production - which is typically used to gauge demand for iron ore - increased 0.1% week-on-week, reaching 2.46 million tonnes on May 8. This was the highest level since October 2023.

Imports of iron ore from China rose by 9.8% between March and April, reaching their highest level since December. Improved margins encouraged mills book more seaborne shipments.

Coking coal and coke, which are used to make steel, also lost ground. They fell by 1.79% and 2.0%, respectively.

The benchmark steel prices on the Shanghai Futures Exchange have fallen. Rebar fell 1.63%, while hot-rolled coils dropped 1.34%. Wire rod fell 2.1%, and stainless steel edged down 0.16%. ($1 = 7.2451 Chinese Yuan) (Reporting and editing by Sherry Jackson, Lewis Jackson and Amy Lv)

(source: Reuters)