BEIJING- Iron ore futures held in a tight range on Thursday as investors reassessed near-term demand prospects in top consumer China amid expectations of steel mills ramping up production despite lingering concerns about the property sector.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.62 percent lower at 888 yuan ($123.41) a metric ton,.
The benchmark March iron ore on the Singapore Exchange was 0.37 percent higher at $116.45 a ton.
Chinese developer Country Garden said on Wednesday a liquidation petition had been filed, clouding its debt revamp prospects and undermining Beijing’s effort to restore confidence in the property sector, the largest steel consumer.
A slower-than-usual downstream demand recovery has dampened Chinese steelmakers’ enthusiasm in ramping up production after the week-long Lunar New Year holiday break, said analysts.
“The country is entering its peak construction period, but there is little sign of steelmakers increasing output,” analysts at ANZ bank said in a note.