Band Enrico Dela Cruz
November 19 (Reuters) – Benchmark iron ore futures rebounded on Friday following positive news from the struggling real estate sector in China, but traders remained cautious about the overall outlook for commodity demand in the largest producer in China. steel to the world..
The most traded iron ore in January on the Dalian Commodity Exchange of China DCIOcv1 ended the day session up 2.5% to 536 yuan ($ 84.00) per ton. The contract hit 509.50 yuan earlier today, its lowest since November 6, 2020, and marked its sixth consecutive weekly decline.
On the Singapore Stock Exchange SZZFZ1, the December 1 iron ore contract was up 5.1% to $ 90.60 a tonne as of 07:24 GMT.
âThere has been a swarm of positive news from Chinese real estate developers. It depends on sentiment, nothing has really changed,â said Atilla Widnell, managing director of Navigate Commodities in Singapore.
China in debt Evergrande 3333.HK has resumed construction of 63 projects in the southern Pearl River Delta, while Country Garden Services Holding 6098.HK raised HK $ 8 billion ($ 1 billion) in a stock sale.
Concerns about the debt problems of Chinese real estate developers, a sector which accounts for about a quarter of domestic steel demand, had recently added to the pressure on iron ore and steel prices.
The benchmark 62% iron ore spot price in China was $ 90 a tonne on Thursday, the lowest in 18 months, according to data from consultancy SteelHome. SH-CCN-IRNOR62
Environmental restrictions, which have forced Chinese steel plants to cut production this year, are expected to continue until after the Beijing Olympics in February as authorities seek to clean up the smog-laden sky.
âDespite continued cuts in steel production, weak demand has resulted in market imbalance, leading to lower steel prices and margins,â said Richard Lu, senior analyst at CRU in Beijing.
“In addition, iron ore inventories have reached a high level over several years.”
Structural steel rebar on the Shanghai Futures Exchange SRBcv1 climbed 2.2%, while hot-rolled coils SHHCcv1 jumped 1.3%. Stainless steel SHSScv1 gained 0.4%.
dalian coking coal DJMcv1 fell 0.7%, but coke DCJcv1 increased by 0.5%.
Cumulative losses of iron orehttps://tmsnrt.rs/3HAgfOm
(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.