Iron ore trades range-bound as freight costs offset weak demand
Iron ore futures traded in a narrow range on Tuesday, with support from rising freight costs countered by pressure from a weak near-term demand outlook. The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) traded 0.14% higher at 716.5 yuan ($107.01) a metric ton, as of 0220 GMT. The benchmark October iron ore on the Singapore Exchange was 0.15% higher at $97.15 a ton. Mainstream route freight rates rose across the board as of September 21, with the Capesize C5 route from Australia up $0.1 a ton and the C3 route from Brazil up $0.2 a ton, data from consultancy
By Emily Ou Yong SINGAPORE, Sept 22 (Reuters) — Iron ore futures traded in a narrow range on Tuesday, as support from rising freight costs countered pressure from a weak near-term demand outlook. 01) a metric ton, as of 0220 GMT. 15 a ton. 2 a ton, data from consultancy Mysteel showed.
Rising freight costs feed into ore prices through landed costs, particularly for longer-haul cargoes such as Brazilian and non-mainstream ore, analysts from broker Huatai Futures said, adding that this is helping support a floor under prices. Oil prices, a key part of shipping costs, gained after several days of declines, as markets watched possible US-Iran talks at the United Nations General Assembly this week. O/R End-use demand has yet to reach a turning point, and iron ore demand is unlikely to improve in the near term and prices are likely to stay rangebound with a weaker bias, analysts from Shanghai Metals Market said in a note.
China's domestic steel demand will fluctuate downwards over the next decade, though it will likely remain above 800 million tons during the 15th Five-Year Plan before falling below that level by 2035, Liu Jian, president of the China Iron and Steel Association, said on Sunday. 89%, respectively. Steel benchmarks on the Shanghai Futures Exchange were stronger. 18% higher.
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