Iron ore futures rose on Friday, with the Singapore benchmark rebounding after a five-session sell-off after improving steel margins in China eased concerns over weak demand for the steel ingredient. .
Iron ore, however, saw weekly losses amid concerns over China’s struggling real estate sector, Covid-19 restrictions, steel production cuts and Sino-US tensions over Taiwan.
The September iron ore contract on the Singapore Stock Exchange rose 3.6% to $109.55 a tonne after hitting its weakest level since July 25 at $104.70 on Thursday.
On China’s Dalian Commodity Exchange, the top-traded contract for January 2023 ended trading up 2.6% at 723 yuan ($107.18) a tonne.
“Fundamentals have improved marginally,” analysts at Zhongzhou Futures said in a note, citing a rebound in steel margins that led to the restart of some idle blast furnaces in China, the world’s biggest steel producer.
Steel inventories held by traders in 132 Chinese cities surveyed by consultancy Mysteel fell by 603,700 tonnes from last week to a six-month low of 20.3 million tonnes on 4 August.
Inventories at 184 Chinese steelmakers fell for the sixth week between July 28 and August 3 to 4.76 million tonnes, Mysteel said.
Source: CNN Brasil
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