Iron ore futures were mixed on Wednesday, with prices in Singapore rebounding modestly, while the steelmaking ingredient’s Dalian benchmark extended losses after a China steel industry group urged producers to curb output to keep themselves afloat.
Steel prices in China have sunk in the wake of a disappointing pace of recovery in demand after Beijing removed COVID-19 restrictions and rolled out measures to support the struggling domestic property sector.
Weak prices pose severe challenges to steel mills, the China Iron and Steel Association said at a meeting with several steelmakers on Monday, urging them to cut output to help ensure a stable cash flow.
Iron ore’s benchmark May contract on the Singapore Exchange was up 0.4 percent at $102.85 a ton after earlier hitting $99.90 a ton. It has fallen 22 percent, however, from a peak of $132 on March 15.
In contrast, the most-traded September iron ore on China’s Dalian Commodity Exchange ended morning trade 0.6 percent lower at 715 yuan ($103.28) a ton. Earlier in the session, it hit 698 yuan, its lowest since Dec. 8. – Reuters
