(HSV VIETNAM GROUP) – Iron ore futures fluctuated in a narrow range on Thursday as market participants awaited further signals on trading prospects for the new year after mixed signals in top consumer China overshadowed direction.
The most traded May iron ore contract on China's Dalian Commodity Exchange (DCE) ended the daytime session up 0.64% at 782 yuan ($107.14)/ton.
February's benchmark iron ore price on the Singapore Exchange increased 0.35% to 100.85 USD/ton after hitting a low of 99.15 USD/ton at the beginning of the session. Chinese markets were closed on Wednesday. A private sector survey showed Chinese factory activity rose in December but at a slower pace than expected, similar to Tuesday's official survey.
That, along with concerns about the demand outlook amid U.S. President Donald Trump's impending tariff hikes, has fueled hopes of more stimulus from Chinese authorities in 2025 to counter any negative impact.
But persistently falling demand in recent weeks as steelmakers maintained more equipment at the end of the year has become a drag on prices of the key steelmaking component. Hot metal yield is often used to evaluate iron ore demand.
Steel mills' input replenishment for their production needs over the Lunar New Year appears to be nearing an end, suggesting spot purchasing demand is likely to be lower in the coming weeks.
China's Lunar New Year starts on January 28. Domestic steelmakers often stock up on inventory to meet production needs during and after the holiday.
Ha Diem HSV