The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) held steady, ending morning trade at 799.5 yuan ($109.29) a metric ton. The benchmark February iron ore on the Singapore Exchange was 0.44% lower at $103.4 a ton. Australia’s Port Hedland, the world’s largest iron ore export hub, has resumed operations after cyclone Sean moved away from the port, the Pilbara Ports Authority said.
The port was closed on Saturday night over threat from the cyclone. Steel inventory is low and the demand for raw material replenishment is also similarly low, Chinese consultancy Galaxy Futures said. The decline in demand for steel in real estate is expected to narrow, Galaxy Futures added. The total investment in Chinese real estate development fell in 2024, decreasing 10.6% from 2023, Chinese consultancy Lange Steel said, referencing data from the National Bureau of Statistics. Still, Country Garden, once China’s biggest property developer, expects to reach agreeable terms with creditors next month.
The developer defaulted on debt repayment obligations for $11 billion in offshore bonds in late 2023, deepening a debt crisis in the property sector. Meanwhile, customs data last week showed iron ore imports stayed at 100 metric ton as China’s recent stimulus measures boosted prospects, ANZ analysts said. China’s economy ended 2024 with an annual growth of 5%, aided by a blitz of stimulus measures, meeting government targets and beating market forecasts. Other steelmaking ingredients on the DCE declined, with coking coal and coke sliding 2.69% and 2.65%, respectively. Steel benchmarks on the Shanghai Futures Exchange traded mixed. Rebar gained 0.21% and hot-rolled coil added nearly 0.3%, while wire rod and stainless steel shed 1.67% and 1.85% respectively.
