Dalian iron ore ticks up on firmer steel exports; weaker China trade data caps gains
By Gabrielle Ng
SINGAPORE, Oct 15 (Reuters) -Dalian iron ore futures prices edged up on Tuesday, as stronger steel exports and hopes of further fiscal stimulus from Beijing continued to support prices, although softer overall trade data clouded top consumer China's demand prospects and capped gains.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 traded 0.82% higher at 801.0 yuan ($112.80) a metric ton, as of 0230 GMT.
The benchmark November iron ore SZZFX4 on the Singapore Exchange was 0.04% lower at $107.55 a ton.
"Iron ore was steady as strong Chinese steel exports mitigated ongoing weakness in the property sector," said ANZ analysts.
September exports hit their highest level since 2016, reaching 10.2 million tons, with year-to-date exports up 21% year-on-year, ANZ added, citing customs data on Monday.
However, China's overall export growth slowed sharply in September, while imports also unexpectedly decelerated, the customs data showed, undershooting forecasts by big margins and suggesting manufacturers are slashing prices to move inventory ahead of tariffs from several trade partners.
While stronger-than-expected external demand has been a key supporting factor for China's manufacturing sector through the year, September's trade data shows export demand may be softening, while sluggish domestic demand continues to drag imports, said ING analysts.
"Although the process continues to take longer than what many market participants hope for, we continue to expect a solid fiscal stimulus push."
On Monday, Chinese media reported the government may raise an additional 6 trillion yuan ($850 billion) from special treasury bonds over three years to help bolster a sagging economy.
Other steelmaking ingredients on the DCE traded sideways, with coking coal DJMcv1 down 0.27% and coke DCJcv1 up 0.35%.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar SRBcv1 edged up 0.06% and wire rod SWRcv1 ticked 0.08% higher, while hot-rolled coil SHHCcv1 dipped 0.08% and stainless steel SHSScv1 lost 0.43%.
($1 = 7.1012 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich
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