Iron ore consolidates, market awaits clarity on Sino-US trade talk progress
BEIJING: Iron ore futures prices were range-bound on Thursday, as investors awaited more details on the trade talks between the U.S. and China, even as U.S. President Donald Trump struck a positive note.
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) closed the morning trade 0.07% lower at 705 yuan ($98.16) a metric ton.
The benchmark July iron ore on the Singapore Exchange dipped 0.53% to $94.6 a ton, as of 0400 GMT.
Trump on Wednesday said he was very happy with a trade deal that restored a fragile truce in the U.S.-China trade war.
But Beijing has not confirmed the progress on the trade talks.
'If both countries could finalise a deal, it's definitely good news as it will remove some uncertainty for the export business; but at the same time, it may reduce the possibility of more stimulus (by Beijing),' said a steel mill manager on condition of anonymity.
Focus has temporarily shifted to the weakening fundamentals before there is more clarity on Sino-U.S. trade talks, said Ge Xin, deputy director at consultancy Lange Steel.
Iron ore rebounds as traders cheer Sino-US trade progress
'Steel output has been declining for two weeks, indicating lower consumption of raw materials, including iron ore,' Ge said Other steelmaking ingredients on the DCE lost ground, with coking coal and coke down 1.9% and 1.33%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange shed. Rebar lost 0.8%, hot-rolled coil fell 0.74%, wire rod dropped 0.72% while stainless steel added 0.76%.
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