The head of iron ore for weekly profits at a stable request, lower inventory

Iron ores that are traded in a narrow range on Friday, but are determined for weekly profits, supported by stable demand from leading Chinese consumers and decreased inventory.

The most widely traded January iron ore contract in the China Dalian Commodity Exchange (DCE) Tio1! Close daytime trading 0.77% is higher in 787.5 yuan ($ 110.10) per metric ton, with a weekly increase of 2.3%.

Benchmark October Iron Ore (Szzfv5) in Singapore Exchange fell 0.53% at $ 103.55 per ton, at 0814 GMT, but has risen 3% so far this week.

Demand for the main steel making material stands Teguh despite production restrictions in Tangshan, China’s top steel production center, to ensure better air quality for military parade on September 3 to commemorate the end of the Second World War.

Daily hot metal output, the main indicator of iron ore demand, down 0.3% Sunday-to-week to 2.4 million tons, on August 28, but still 8.7% higher than the same period last year, according to data from Mysteel consultation.

However, two analysts warn that the output is likely to fall sharper next week because the impact of the latest control of the latest production takes place, has the potential to put pressure on prices.

The decline in Portside shares, which slid by 0.4% from the previous week according to Mysteel data, also supported the price of ore.

Increasing sentiment also news that China will encourage to cut steel production between 2025 and 2026, because it handles excess capacity that has reached price and feeding protectionist reactions worldwide.

Other steel making materials, Coking Coal Nymex: Act1! and Coke (DCJCV1), each down 0.13% and 0.87%.

Most of the steel benchmarks in Shanghai Futures Exchange loses soil. RBF1 REBAR! Falling 0.83%, hot-rolled coil EHR1! Hugged 0.21%, the wire rod (SWRCV1) slid 0.69% while Stainless Steel HRC1! added 0.16%.
Source: Reuters