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Dalian iron ore eases on sluggish China demand, stimulus eyed

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Dalian iron ore futures prices fell on Tuesday, weighed down by concerns about demand in top consumer China, although investors hoped for more stimulus from a key meeting next week.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade 0.5% lower at 834 yuan ($114.70) a metric ton.

The benchmark August iron ore SZZFQ4 on the Singapore Exchange was up 1% at $109.4 a ton.

“The market is hopeful that China’s Third Plenum will reveal further stimulus measures,” ANZ Research said in a note.

Economists and investors are awaiting for the Third Plenum to be held on July 15-18 with hundreds of China’s top Communist Party officials gathering in Beijing for the five-yearly meeting.

Other steelmaking ingredients on the DCE were mixed, with coking coal DJMcv1 up 0.3% and coke DCJcv1 down 0.2%.

Steel benchmarks on the Shanghai Futures Exchange trended down. Rebar SRBcv1 eased 0.5%, hot-rolled coil SHHCcv1 slipped 0.6%, wire rod SWRcv1 shed 0.6%, and stainless steel SHSScv1 lost 1.7%.

Source: Reuters

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