Iron ore moves sideways

- Advertisement -

SINGAPORE- Iron ore futures traded in a narrow range on Thursday, as investors weighed fresh initiatives by top consumer China to support its equity markets against concerns of higher US tariffs on Chinese imports.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.13 percent higher at 799 yuan ($109.76) a metric ton.

The benchmark February iron ore on the Singapore Exchange ticked down 0.06 percent to $103.5 a ton.

- Advertisement -

Chinese stocks strengthened in early trading, gaining broad support from Beijing’s latest initiative to prompt insurance funds into purchasing shares listed on the mainland.

Beijing has been intensifying policy support to boost investor confidence, as the country navigates deflationary pressure and geopolitical tension.

Iron ore is under pressure amid concerns that a broader trade war will dent export-driven demand in the steel sector, said ANZ analysts.

US President Donald Trump said on Tuesday his administration was considering a 10 percent tariff on Chinese imports.

Since taking office, Trump has yet to make a final decision on tariffs against China, stoking uncertainty, and steel prices are still mainly range-bound, Chinese consultancy Galaxy Futures said in a note. 

On the supply-side, Australia’s Fortescue posted a marginal rise in its second-quarter iron ore shipments.

Author

- Advertisement -

Share post: