SINGAPORE- Iron ore futures prices dipped on Friday amid rising trade war concerns, but posted a weekly gain on strengthening demand for the key steelmaking ingredient in top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.19 percent lower at 785.5 yuan ($108.13) a metric ton. The contract has gained 3.09 percent so far this week.
The benchmark April iron ore on the Singapore Exchange was 0.14 percent lower at $103.35 a ton, as of 0722 GMT, gaining 3.44 percent this week so far.
Hot metal output continued to increase in March by 10,200 tons to 2.3728 million tons month-on-month, and the daily consumption of imported ore logged a monthly increase of 13,200 tons, broker Everbright Futures said.
Hot metal output is typically used to gauge iron ore demand.
There has been a seasonal improvement in downstream demand, said broker Galaxy Futures, adding that there will continue to be demand for replenishment of iron ore in the short term.
On Thursday, Chinese Vice Premier Ding Xuexiang pledged stronger policy support for the economy, as Chinese policymakers try to cushion the impact of US President Donald Trump’s tariff salvos.
