SINGAPORE- Iron ore futures climbed higher on Tuesday, although weak China economic trade data added pressure on authorities to roll out further concrete stimulus measures, while expectations of steel output curbs continued to weigh on the market.
The most-traded January iron ore on China’s Dalian Commodity Exchange was up 1.2 percent at 726.5 yuan ($100.77) per metric ton, after falling for the last three sessions.
On the Singapore Exchange, the benchmark September iron ore was up 1 percent at $102.0 a metric ton.
China’s imports of iron ore in July slipped 2 percent from the previous month, customs data showed on Tuesday, as sintering curbs in the major steel production hub Tangshan dampened demand for the key steelmaking ingredient.
Overall, the country’s exports fell 14.5 percent in July year-on-year, while imports contracted 12.4 percent , customs data showed on Tuesday, in the biggest decline in outbound shipments from the world’s second-largest economy since February 2020.
China’s economy grew at a sluggish pace in the second quarter as demand weakened at home and abroad, prompting top leaders to promise further policy support at a meeting of the Politburo last month.
Concerns of further steel output cuts in China also resurfaced, with Rio Tinto reportedly warning last week that the country’s steel output was reaching saturation point, ANZ analysts said in a note.
