SINGAPORE – Iron ore futures prices pared losses on Monday, with prices supported by near-term ore demand and a weakening dollar, though ongoing trade tensions between the US and top consumer China limited gains.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.78 percent higher at 712 yuan ($97.70) a metric ton.
The benchmark May iron ore on the Singapore Exchange was 1.23 percent higher at $98.7 a ton.
On the demand-side, hot metal production is at a high level and terminal demand is resilient, said broker Hexun Futures in a note.
Hot metal output is typically used to gauge demand for iron ore.
“Production among China’s independent electric-arc-furnace (EAF) steelmakers has now risen for 10 weeks straight,” said consultancy Mysteel in a note.
Also providing some support to prices was a weaker US dollar, which slid to a three-year low of 98.623 against a basket of currencies on Monday.
A weaker dollar makes dollar-denominated commodities cheaper for holders of other currencies.
Last week, US President Donald Trump signaled a potential end to tit-for-tat tariffs between the US and China, expressing optimism that the two countries could reach a deal.
