Iron ore rangebound as softer China lending data, stimulus hopes weigh

Iron ore futures traded within a narrow range on Wednesday, as investors weighed hopes of further fiscal support for China’s beleaguered property sector against weaker credit lending data from the top consumer. The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade 0.2% lower at 762.

5 yuan ($105.52) a metric ton. The benchmark December iron ore SZZFZ4 on the Singapore Exchange was 0.



27% lower at$100.2 a ton, as of 0732 GMT. Chinese banks extended 500 billion yuan ($69.

5 billion) in new loans last month, a sharp drop from September and trailing analysts’ expectations, data showed on Monday. Sentiment in China has remained largely downbeat after Beijing’s disappointing stimulus package on Friday, buta Bloomberg news report on Tuesday saying China is preparing to cut home-buying taxes somewhat lifted the mood. Friday’s measures at least set the foundation for further fiscal stimulus roll-out by local governments and state-owned enterprises, who will likely play a large role in the moves to stabilise the property market in future, said ING analysts.

The property market remains China’s largest steel consumer despite the sector’s falling share amid the protracted crisis since 2021. Meanwhile, iron ore port inventories are now at their highest level ever for this time of the year, ANZ analysts said in a note. “We expect a rise in supply in the second half of the year from key exporters as they overcome disruptions due to weather and operational issues,” ANZ said in a separate report.

Other steelmaking ingredients on the DCE edged higher afterfalling on Monday, with coking coal DJMcv1 and coke DCJcv1 up 0.27%and 0.44%, respectively.

Most steel benchmarks on the Shanghai Futures Exchange posted marginal gains. Rebar SRBcv1 and hot-rolled coil SHHCcv1ticked up almost 0.3%, wire rod SWRcv1 advanced about 0.

8%, although stainless steel SHSScv1 shed nearly 0.8%. Source: Reuters (Reporting by Gabrielle Ng; Editing by Sumana Nandy and Janane Venkatraman).