SINGAPORE- Iron ore futures strengthened on Wednesday, underpinned by resilient seasonal demand for the key steelmaking ingredient that countered trade war concerns ahead of looming US tariffs.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) gained 1.15 percent to 792 yuan ($108.95) a metric ton.
The benchmark May iron ore on the Singapore Exchange eased 0.09 percent to $102.8 a ton.
Steel production is increasing overall, rising higher than last year, said broker Galaxy Futures.
Production at Chinese blast furnace steelmakers rose for the fifth consecutive week on March 27, driven by a further recovery in steel demand from end-users and positive margins for mills, said consultancy Mysteel.
Total iron ore stockpiles across ports in China dipped 0.65 percent week-on-week to 137.6 million tons as of March 28, Steelhome data showed.
Moreover, China’s factory activity expanded at its fastest pace in four months in March, buoyed by stronger demand and robust export orders, boosting sentiment and leading Chinese stocks to close higher on Tuesday.
US President Donald Trump will impose fresh tariffs on Wednesday, the White House confirmed on Tuesday, but provided no details about the size and scope of the trade barriers.
On the supply side, the total volume of iron ore dispatched to global destinations from Australia and Brazil rose 5.3 percent on-week to 26.5 million tons as of March 30, Mysteel said.
