BEIJING- Iron ore futures were in a tight range on Monday, with the Dalian benchmark ticking up and Singapore prices receding, as investors pondered the demand outlook in the absence of an expected monetary easing in top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.69 percent to 953.5 yuan ($132.52) a metric ton.
The benchmark February iron ore on the Singapore Exchange was, however, 0.5 percent lower at $129.25 a ton.
China kept benchmark lending rates unchanged at its monthly fixing on Monday following the decision to hold its medium-term lending facility rate steady last week, meeting expectations and reflecting Beijing’s limited room for monetary easing amid pressure on the yuan.
The market is concerned about medium-to-long term demand outlook amid macroeconomic uncertainty, analysts at Huatai Futures said in a note.
“Hot metal output stayed at a relatively low level compared to the same period a year before, but a downside room for ore prices might be limited as some mills still have the need to replenish feedstocks,” they added.
