SINGAPORE — Iron ore futures prices edged up on Monday, supported by resilient demand for the steelmaking material, though US steel tariff concerns capped gains.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.21 percent higher at 704.5 yuan ($98.11) a metric ton.
The benchmark July iron ore on the Singapore Exchange rose 0.31 percent to $94.45 a ton, as of 0709 GMT.
Around 60 percent of blast-furnace steel mills in China reported positive margins as of June 12, data from consultancy Mysteel showed.
Average daily hot metal output, typically used as a gauge of iron ore demand, held firm on-week around 2.42 million tons as of June 13, according to Mysteel data.
Still, China’s crude steel output slipped sharply in May compared to the prior year, surprising analysts and keeping steelmakers on track for lower production this year in line with Beijing’s push to cut output in the sector.
Meanwhile, the country’s factory output growth hit a six-month low in May, while retail sales picked up steam.
On the trade front, a range of imported household appliances, including dishwashers, washing machines, refrigerators and more will be subject to US President Donald Trump’s 50 percent steel tariffs from June 23.
Broadly, China’s new home prices fell in May, extending a two-year long stagnation, official data showed on Monday, highlighting challenges in the sector despite several rounds of policy support measures.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 2.84 percent and 1.9 percent, respectively.
Most steel benchmarks on the Shanghai Futures Exchange strengthened. Rebar rose 0.98 percent, hot-rolled coil was up 1.07 percent, wire rod edged 0.15 percent higher, while stainless steel edged down 0.08 percent.
