IEA, India to collaborate on critical minerals data analysis
The IEA is placing a strong focus on critical minerals analysis, with the Agency set to release a World Energy Outlook special report this month.
Iron ore futures were poised for a third straight weekly rise as prices largely consolidated gains on Friday, with improving demand in top consumer China countering higher portside inventories.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) recouped earlier losses and closed daytime trade 0.06% higher at 884.5 yuan ($122.07) a metric ton.
The benchmark May iron ore on the Singapore Exchange was 0.13% higher at $118.45 a ton, as of 0728 GMT.
The Dalian contract posted a weekly gain of 2% and the Singapore benchmark has risen 1.7% so far, buoyed by improved demand and stimulus hopes.
The persistent rise in inventories at ports stoked caution among investors, especially as steel consumption in May is expected to slow as the rainy season hits the southern regions, said analysts.
Iron ore inventories at major ports rose 1.4% week-on-week to 147.59 million tons as of April 26, the highest since April 2022, data from consultancy Mysteel showed.
Meanwhile, average daily hot metal output among mills surveyed grew for a fourth straight week, rising 1.1% to 2.29 million tons – the highest since December 2023, according to Mysteel.
“We expect prices to consolidate further ahead of the May Day holiday, but they may face downside pressure if steel demand from the construction sector misses expectations after the holiday break,” said Chu Xinli, a Shanghai-based analyst at China Futures.
Rising ore prices, coupled with higher coke prices, undermine the cost competitiveness of the steelmaking raw material, analysts at Hongyuan Futures said in a note.
Also, investors and traders waited for directions from a politburo meeting, expected to be held in late April.
Other steelmaking ingredients on the DCE gained, with coking coal and coke up 0.78% and 1.22%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar inched 0.08% higher, stainless steel added 0.63%, while hot-rolled coil dipped 0.13% and wire rod fell 1.28%.
($1 = 7.2458 Chinese yuan)
(By Amy Lv and Andrew Hayley; Editing by Sonia Cheema and Subhranshu Sahu)
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