Mumbai, April 30 (Commoditiescontrol): Iron ore and steel futures experienced declines on Tuesday as a cautious sentiment prevailed ahead of an upcoming Chinese public holiday. Despite this temporary setback, most contracts remain poised for a monthly gain due to increased demand from the property sector.
The most actively traded September iron ore contract on China's Dalian Commodity Exchange (DCE) fell 0.5% to 870.50 yuan ($120.19) per metric ton by the midday break. However, it has still recorded a 16.2% increase this month, putting it on track for its strongest performance since June 2023.
Similarly, the benchmark May iron ore contract on the Singapore Exchange dropped 0.6% to $116.55 a ton but is set to see a 16% monthly gain.
Markets in China, the world's largest steel consumer, will observe a public holiday from May 1-3.
A trader attributed the decline to "some risk-off [sentiment] prior to holidays, which is very normal for a pullback in ferrous."
The ferrous sector outlook leans towards neutral to slightly bullish. This is primarily driven by China's commitment to accelerating infrastructure spending and the ongoing expansion of its manufacturing activity. Last week, China's state planner announced plans to guide local governments in streamlining project construction, significantly boosting steel consumption.
The trader noted that there are some lingering concerns. "Developers have not started bidding up land parcels like they've used to and steel consumption in general has not matched previous years' strength," they said. Additionally, expectations of seasonally lower steel consumption during the hot and wet summer months, which tend to slow down construction, also temper the outlook.
Steelmaking ingredients also saw mixed results. Coking coal on the DCE fell 0.5% to 1,800 yuan a ton, while coke edged up 0.1% to 2,353.50 yuan. Steel benchmarks on the Shanghai Futures Exchange all experienced declines, with rebar, hot-rolled coil, wire rod, and stainless steel falling between 0.1% to 0.7%.
(By Commoditiescontrol Bureau; +91-9820130172)
0 Comments 
Post Comment 
