SINGAPORE- Dalian iron ore futures held steady on Tuesday, as investors weighed hopes of easing Sino-US trade tensions against downbeat Chinese economic data.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade flat at 704.5 yuan ($97.58) a metric ton.
The benchmark June iron ore on the Singapore Exchange was 0.92 percent higher at $97.45 a ton.
On Sunday, US President Donald Trump said the US is meeting with many countries, for trade deals, including China, boosting sentiment and sending Chinese stocks higher on Tuesday.
Beijing is “evaluating” an offer from Washington to hold talks over Trump’s 145 percent tariffs, China’s Commerce Ministry said on Friday.
Meanwhile, China’s services activity expanded at the slowest pace in seven months in April, weighed down by uncertainty due to US tariffs, a private sector survey showed.
The steel market is concerned about overseas recession risks sparked by tariffs, with anti-dumping measures negatively impacting future steel demand, said broker Hexun Futures.
Production among Chinese blast furnace steel producers edged up further during April 25-30, said consultancy Mysteel.
However, downstream demand is expected to weaken in May, with domestic demand transitioning to an off-peak season and external demand facing challenges due to tariffs, Hexun said.
