Dalian and Singapore iron ore futures dipped on Tuesday, hovering around their lowest levels in nearly three weeks, as rising portside inventory in China weighed on prices already pressured by weak demand prospects.
The most-traded iron ore, for May delivery, on China’s Dalian Commodity Exchange fell as much as 1.1 percent to 837 yuan ($123.41) a ton.
On the Singapore Exchange, the steelmaking ingredient’s benchmark March contract was down 1.3 percent at $121.70 a ton.
Imported iron ore stocked at Chinese ports was estimated at 136.5 million tons as of Feb. 3, the biggest inventory since early December, SteelHome consultancy data showed.
“Rising iron ore inventory and steel products are reflecting weaker Chinese demand post the (Lunar New Year) holiday, with reopening now expected to impact the consumer more than construction/housing activity,” Westpact analysts said in a note.
Policymakers in top steel producer China plan to further boost support for domestic demand this year but are likely to stop short of splashing out big on direct consumer subsidies, Reuters reported, citing sources close to policy discussions. – Reuters
