SINGAPORE- Dalian iron ore futures prices fluctuated within a narrow range on Thursday, as investors weighed expectations of additional stimulus measures to boost consumption in China against trade concerns and reports of steel production cuts.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) was flat at 776 yuan ($107.14) a metric ton.
The benchmark April iron ore on the Singapore Exchange edged 0.6 percent higher to $100.35 a ton.
Chinese equities rose on Wednesday after Beijing pledged more stimulus to boost consumption and cushion the impact of an escalating trade war with the United States.
Washington has so far added an extra 20 percent on existing tariffs for Chinese goods, with the latest 10 percent increment enforced on Tuesday, drawing Beijing’s retaliation.
The US needs tougher legislation to enforce trade laws against Chinese government-subsidized companies that circumvent US tariffs by shipping goods through third countries, US companies said on Wednesday.
New US steel tariffs are set to disrupt Chinese trans-shipment of steel to the United States, Reuters previously reported.
Meanwhile, in March, the average daily molten iron output is expected to increase to about 2.329 million tons, broker Hexun Futures said, adding that demand for the steelmaking material has recovered in China.
Still, news of production cuts intensified the downward pressure on prices, Hexun said.
