Iron ore futures are pointing higher ahead of China's GDP report

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Iron ore spot markets softened on Friday, although they still ended the week with solid gains.

According to Metal Bulletin, the spot price for benchmark 62% fines fell 0.26% to $65.74 a tonne, trimming its increase for the week to 4.7%.

It has now gained 23.2% from the low of $53.36 a tonne struck on June 13, but remains down 16.6% year to date.

The weakness in the benchmark was mirrored across the grades.

The price for 58% fines slid 0.9% to $45.50 a tonne while ore with 65% Fe content fell by a smaller 0.12% to $82.30 a tonne.

The modest declines followed a pullback in Chinese rebar futures on Friday, snapping a strong week of gains. That drove iron ore and coking coal futures lower as a consequence, helping to explain the soft day’s trade.

However, as quickly as it began, those moves were reversed on Friday evening, hinting that the weakness in iron ore sport markets may also be replaced by gains today.

Here’s the overnight scoreboard:

SHFE Rebar ¥3,575 , -0.08%
DCE Iron Ore ¥488.50 , 1.88%
DCE Coking Coal ¥1,186.50 , 1.37%
DCE Coke ¥1,862.50 , 0.92%

While rebar futures finished marginally weaker, it closed well off the low of 3,528 yuan struck during Friday’s day session.

Trade in Chinese commodity futures will resume at 11am AEST, one hour before the release of major Chinese economic data, including Q2 GDP.

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