BEIJING- Iron ore futures were poised for a third straight weekly rise as prices largely consolidated gains on Friday, with improving demand in top consumer China countering higher portside inventories.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) recouped earlier losses and closed daytime trade 0.06 percent higher at 884.5 yuan ($122.07) a metric ton.
The benchmark May iron ore on the Singapore Exchange was 0.13 percent higher at $118.45 a ton.
The Dalian contract posted a weekly gain of 2 percent and the Singapore benchmark has risen 1.7 percent so far, buoyed by improved demand and stimulus hopes.
The persistent rise in inventories at ports stoked caution among investors, especially as steel consumption in May is expected to slow as the rainy season hits the southern regions, said analysts.
Iron ore inventories at major ports rose 1.4 percent week-on-week to 147.59 million tons as of April 26, the highest since April 2022, data from consultancy Mysteel showed.
Meanwhile, average daily hot metal output among mills surveyed grew for a fourth straight week, rising 1.1 percent to 2.29 million tons – the highest since December 2023, according to Mysteel.
