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China iron ore, steel futures rangebound; post weekly losses

China iron ore, steel futures rangebound; post weekly losses

Workers pour molten iron into a mould at a workshop in Hangzhou, Jiangsu province, China July 24, 2019. REUTERS/Stringer/File Photo

BEIJING : Chinese steel and iron ore futures traded in tight ranges on Friday with all recording weekly declines on weak seasonal demand and speculation this week about a possible easing of controls on output.

Benchmark iron ore futures on the Dalian Commodity Exchange, for September delivery, ended down 1.3per cent to 895 yuan (US$138.42) per tonne, following a drop in spot 62per cent iron ore which plunged US$11 to US$174.5 per tonne on Thursday.

For the week, iron ore futures plunged 12.9per cent, the biggest weekly drop since the week ended Feb. 28, 2020.

"Iron ore and steel prices have started showing signs of weakness after a long-standing rally, with iron ore falling significantly in the past month," Fitch Solutions wrote in a note.

"Going forward, an improvement in supply and lower consumption by downstream layers will cap price gains for both," it said.

Weekly consumption for major steel products in China as of Aug. 5 fell 2.5per cent to 9.86 million tonnes from a week earlier, data from Mysteel consultancy showed.

Construction steel rebar on the Shanghai Futures Exchange for October delivery closed down 1.0per cent at 5,379 yuan per tonne.

Hot rolled coils declined 0.7per cent to 5,772 yuan per tonne.

On the week, rebar was down 6.2per cent and hot rolled coils fell 6.4per cent.

FUNDAMENTALS

* Dalian coking coal futures rose 1.7per cent to 2,375 yuan a tonne.

* Coke futures inched up 0.5per cent to 2,980 yuan per tonne.

* Shanghai stainless steel futures, for September delivery, edged 0.8per cent higher to 19,015 yuan a tonne.

(US$1 = 6.4656 Chinese yuan renminbi)

(Reporting by Min Zhang and Shivani Singh; editing by Uttaresh.V and Jason Neely)

Source: Reuters

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