BEIJING: Dalian iron ore futures were rangebound on Monday, as investors were wary of mounting downside risks from potential intervention by the Chinese authorities and a lack of direction with Singapore markets closed for the Christmas holiday. The most-traded May iron ore on China’s Dalian Commodity Exchange (DCE) DCIOcv1 edged up 0.15% to 974.5 yuan ($136.59) a metric ton, as of 0201 GMT, following a rise of 3% on Friday. The benchmark January iron ore SZZFF4 contract on the Singapore Exchange was untraded due to the holiday. The government could intervene after a price rally, analysts said. Prices of the key steelmaking ingredient have risen more than 3% in the past week, in part on news that major Chinese banks cut interest rate on some deposits. “Ore demand weakened marginally, but the market is still holding an expectation of a wave of winter restocking from steelmakers,” analysts at Sinosteel Futures said in a note. Chinese steelmakers typically replenish raw materials to sustain production needs over the Chinese New Year holiday break. Other steelmaking ingredients on the DCE edged down, with coking coal DJMcv1 falling 0.48% and coke DCJcv1 down 0.17%. Steel benchmarks on the Shanghai Futures Exchange broadly gained on reduced steel production in many regions of China. Rebar SRBcv1 ticked up 0.18%, hot-rolled coil SHHCcv1 added 0.39%, and stainless steel SHSScv1 advanced 1.51%. Web Desk
A few cities in northern China including the steel production hub Tangshan, have unveiled plans to initiate emergency responses, citing worsening air pollution.
Local mills are typically required to curb production, weighing on demand for steelmaking raw materials and supporting prices of steel products.
Wire rod SWRcv1 lost 2.35%.
($1 = 7.1345 Chinese yuan)
