Iron ore slides to nearly one-week low on subdued Chinese steel market (updated)

China Steel

23/04/2024 08:38

* 
      Dalian and Singapore benchmarks fall to nearly one-week
low
    

        * 
      Coking coal slides more than 3%, coke down over 1.5%
    

        * 
      Steel benchmarks broadly lower amid weather-related
softening
demand
    

  
 (Updates closing prices, recasts leading paragraph)
       BEIJING, April 23 (Reuters) - Iron ore futures prices
extended losses for a second straight session on Tuesday to
their lowest level in nearly two weeks on signs of softening in
the steel market due to subdued demand in top consumer China.
    The most-traded September iron ore contract on China's
Dalian Commodity Exchange (DCE)  DCIOcv1  ended daytime trade
down 1.91% at 849 yuan ($117.17) a metric ton, its lowest since
April 17.
    The benchmark May iron ore  SZZFK4  on the Singapore
Exchange slipped 2.88% to $112.85 a ton, as of 0702 GMT, also
the lowest since April 17.
    The momentum of steel consumption in the world's
second-largest economy since early April has slowed down after
some southern regions in China were hit by earlier-than-expected
rains.
     "Steel consumption was suppressed in the short term as
rainy weather hit southern regions, which also dented
speculative buying," analysts at Huatai Futures said in a note. 
    Further, high inventory and thinning spot buying interest
after some mills stockpiled volumes during the May Day holiday
weighed down prices of the key steelmaking ingredient, said
analysts.
    "The supply of iron ore is currently still higher than
actual needs with continuous pick-up in portside stocks,"
analysts at Jinrui Futures said in a note. 
    "Expectations of a faster issuance of special bonds and
equipment upgrade, however, have yet to materialise," they
added.
    Meanwhile, investors also await a politburo meeting, which
is expected to take place in late April and may give clues on
Beijing's policy direction.
    Other steelmaking ingredients on the DCE receded further,
with coking coal  DJMcv1  and coke  DCJcv1  down 3.13% and
1.76%, respectively.
    Steel benchmarks on the Shanghai Futures Exchange were
lower. Rebar  SRBcv1  fell 0.84%, hot-rolled coil  SHHCcv1  and
wire rod  SWRcv1  shed 0.68%, and stainless steel  SHSScv1  slid
2.28%.



($1 = 7.2457 Chinese yuan)

 (Reporting by Amy Lv and Mei Mei Chu; Editing by Janane
Venkatraman and Sonia Cheema
)
 ((Amy.Lv@thomsonreuters.com;))