STEEL NEWS

Iron ore in China rose in price after a record decline in 10 sessions

Dalian iron ore futures rose on June 24 after a record 10-session drop, but prices in Singapore remained under pressure from a bleak demand outlook from China's largest steelmaker, Reuters reported.

September iron ore contracts, the most traded on China's Dalian Commodity Exchange, ended the volatile day's trading up 1% to 736 yuan ($109.90) a ton. The benchmark contract fell 11% last week, the sharpest drop since mid-February.

In Singapore, July contracts for steel ingredients fell 1% late to $115 a tonne as of 0709 GMT.

Iron ore rose 7.4% on Thursday, rebounding from its weakest close this year in the previous session after Chinese President Xi Jinping vowed to take more effective measures to meet the country's economic and social development goals.

Mr. Xi's remarks also supported the spot market, with a Fe62% reference iron ore destined for China trading on June 23 at $117.50/t. It fell to $112.50 the day before, its lowest level since Dec. 10, according to consulting firm SteelHome.

While "market confidence has recovered to a certain extent," analysts at Sinosteel Futures said that the absence of any further and concrete economic stimulus from Beijing for the time being would limit any price increases.

At Tangshan, China's steelmaking hub, 56 of 126 blast furnaces were closed for maintenance as plants struggled to cope with plummeting margins amid weak demand and high inventories, according to Sinosteel.

COVID-19 restrictions, which have put downward pressure on the real estate sector, and disruptions to construction activity caused by adverse weather conditions, are further headwinds for China's giant steel sector.

Structural steel reinforcement on the Shanghai Futures Exchange rose 0.3%, while hot-rolled coil added 0.1%. Stainless steel slipped 3.2%.

Dalian coking coal fell 0.9%, while coke rose 0.4%.