Dalian iron ore falls to one-week low but logs weekly gain
Updates closing prices
By Gabrielle Ng
SINGAPORE, Nov 1 (Reuters) - Dalian ironore futures posted weekly gains, even as prices hit one-week lows on Friday as investors weighed a softer global demand outlook against better economic data from top consumer China and prospects of further stimulus from Beijing.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade 1.47% lower at 770.5 yuan ($108.17) a metric ton.
The contract earlier fell to 764.5 yuan, its weakest since Oct. 25. It gained 0.65% for the week.
The benchmark December iron ore SZZFZ4 on the Singapore Exchange was 1.38% lower at $102.25 a ton, as of 0712 GMT. It rose 2.35% for the week.
China's new home prices rose at a faster pace in October, suggesting that recent support measures could be having some early impact in a crisis-hit market.
Manufacturing activity in the world's second-largest economy swung back to growth last month as an expansion in new orders led to a pick-up in production growth.
However, new export orders declined to an eight-month low, signalling weakening external demand, which has been one of the main drivers behind a stronger-than-expected manufacturing performance for much of 2024, ING analysts said.
"Moving forward, we'll need to see if the stimulus rollout can lead to a recovery of domestic demand to offset potentially softer external demand picture, which could be even less favourable if we see a Trump victory and subsequent escalation of tariffs," said the ING analysts.
Meanwhile, imported iron ore stocks at 45 major Chinese ports posted their fourth consecutive weekly rise in the week to Oct. 31, reflecting a lower discharge volume, consultancy Mysteel said in a note.
Other steelmaking ingredients on the DCE lost ground, with coking coal DJMcv1 and coke DCJcv1 down 1.33% and 1.46%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were weaker. Rebar SRBcv1 lost almost 1.2%, hot-rolled coil SHHCcv1 weakened nearly 0.9%, wire rod SWRcv1 shed 1.67% and stainless steel SHSScv1 edged around 0.1% lower.
($1 = 7.1229 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
