- Iron ore spot and futures markets remain quiet.
- Chinese steel prices remain supported by output curbs being rolled out on environmental grounds.
- There was no reaction in futures to news that US President Donald Trump is considering slapping tariffs on all Chinese imports entering the country.
Iron ore markets remain a sea of peace and tranquility, ignoring the gyrations seen in many other commodity markets on Friday.
Usually it’s the other way around with iron ore jumping around like a cat on a hot tin roof.
According to Metal Bulletin, the spot price for benchmark 62% fines dipped 0.2% to $65.14, reversing a similarly-sized increase on Thursday.
Small losses were also recorded across lower and higher grades to end the week.
The price of 58% fines shed 0.3% to $38.16 a tonne, while 65% fines lost 0.5% to settle at $91.70 a tonne.
The small declines across spot markets mirrored similar price action in futures.
After storming higher earlier in the week on the back of signs of strong demand and continued output curbs on environmental grounds, rebar futures traded lower for most of the session before finishing at 3,985 yuan, up marginally from Thursday’s night session close of 3,980 yuan.
Regulators in Tangshan, a major industrial hub in China, have ordered steel mills, coke producers and utilities to reduce output levels from July 20 until August 31, a decision coming on top of previous cuts imposed between March to November.
Like steel futures, iron ore, coking coal and coke futures in Dalian also reversed earlier losses to close marginally higher for the session.
Iron ore finished Friday’s day session at 472.5 yuan, up from Thursday’s night session close of 468.5 yuan.
Coking coal and coke contracts also edged higher, finishing trade at 1,166.5 and 2,054.5 yuan respectively. They closed Thursday’s day session at 1,162.5 and 2,027 yuan respectively.
There was little change on those levels in overnight trade on Friday.
SHFE Rebar ¥3,974 , -0.13%
DCE Iron Ore ¥471.00 , 0.32%
DCE Coking Coal ¥1,161.00 , -0.13%
DCE Coke ¥2,065.00 , 1.42%
The resilient performance from futures came despite US President Donald Trump suggesting he was ready to impose tariffs on all Chinese imports entering the United States.
Trade in Chinese commodity futures will resume at 11am AEST.
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