Dalian and Singapore iron ore futures rose slightly on Friday as concerns over brewing banking turmoil eased, though a potential limit on steel production in China this year capped further gains.
The most-traded May iron ore on China’s Dalian Commodity Exchange ended daytime trade 0.4 percent higher at 915 yuan ($133.10) a ton. It was, however, headed for its first weekly loss in six weeks, having fallen more than 2 percent from last week.
On the Singapore Exchange, the steelmaking ingredient’s benchmark April contract SZZFJ3 was up 0.5 percent at $129.85 a ton. It hit $126.85 a ton earlier in the session, its weakest since March 9.
“The full weight of (Chinese regulators’) intervention in the iron ore market is becoming more obvious,” Westpac analysts said in a note.
Top steel producer China will again cut annual crude steel production in 2023, making it the third consecutive year that the government has mandated an output limit in line with its emission reduction program, Bloomberg News reported on Wednesday.
The report, which is yet to be officially confirmed, comes as Chinese regulators have repeatedly warned against excessive price speculation on iron ore and hoarding. – Reuters
