Iron ore futures floated lower on Friday and towards weekly losses due to increased concerns over the prospects of demand in Top China consumers amid increasing the global trade war.
The most widely traded Iron ore contract in the China Dalian Commodity Exchange (DCE) ended the daytime trading 0.33% lower at 757.5 yuan ($ 104.52) per metric ton, posted a decrease in weekly 3.8%.
The contract reached the lowest since January 10 at 753.5 yuan one ton at the beginning of the session.
April Iron Ore (Szzfj5) benchmark in the Singapore Exchange released 0.85% to $ 99.65 per ton at 0714 GMT, after reaching the lowest since March 11 at $ 99.05 per ton early. This has fallen 4.2% so far this week.
China is pondering preparing related funds to build a compensation system to eliminate outdated steel capacity, Qian Gang, Chair of Citic Pacific Special Steel, as quoted.
It was interpreted by several analysts as other signals that Beijing was determined and serious about overcoming the excess capacity that disrupted the steel industry this year, weighing the tastes of steel manufacturing materials.
Citic did not immediately respond to Reuters’ comments requests.
At the annual parliamentary meeting earlier this month, China said it would restructure the giant steel industry through cutting output without specifying the details.
But clear collection in short -term demand restrains losses on Friday.
The average daily hot metal output, usually used to measure the demand for iron ore, rose 2.5% week to week to the highest since August 2, 2024, with 2.36 million tons on March 20, a survey from the consultant shown by Mysteel.
Other steel making materials on DCE retreed, with Coking Coal Nymex: Act1! and Coke (DCJCV1) each lost 1.8% and 1.76%.
Steel benchmarks in Shanghai Futures Exchange move in tight distances. The rebar and hot-rolled coils change slightly, wire rods (SWRCV1) drops 0.38%, and stainless steel lost 0.6%.
Source: Reuters
