Iron ore tracks base, precious metals lower on risk-off appetite
Rewrites, updates closing prices, adds analyst comment in paragraphs 5-6
BEIJING, May 23 (Reuters) -Iron ore futures declined on Thursday, tracking a weaker base and precious metals market as a stronger U.S. dollar fuelled a broad risk-off appetite.
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 ended morning trade 1.09% lower at 906.5 yuan ($125.13) a metric ton.
The benchmark June iron ore SZZFM4 on the Singapore Exchange was trading 1.77% lower at $119.45 a ton as of 0725 GMT.
A stronger dollar =USD following hawkish minutes from the U.S. Federal Reserve that revealed a willingness to raise interest rates among some officials pressured prices of metals.
"Iron ore also felt some knock-on impact from other base and precious metals such as copper and silver as well as a falling stock market," said Pei Hao, a Shanghai-based analyst at international brokerage Freight Investor Services (FIS).
Shanghai Copper SCFcv1 lost more than 4% while silver SAGc1 slipped nearly 5%.
However, declines were capped by the latest Chinese property stimulus, wherein several cities lowered down payment and mortgage loan interest rates to lift demand.
This comes after Beijing announced "historic" steps last Friday to stabilise its crisis-hit property sector.
"There is still expectation of a further increase in hot metal output as mills still have some margins... but iron ore destocking at ports has not gone through smoothly," analysts at Shengda Futures said in a note.
Other steelmaking ingredients on the DCE narrowed earlier gains, with coking coal DJMcv1 and coke DCJcv1 up 0.34% and 0.84%, respectively.
"Coal output has been on the decline while demand will likely pick up further," analysts at First Futures said in a note.
Steel benchmarks on the Shanghai Futures Exchange were lower. Rebar SRBcv1 shed 0.29%, hot-rolled coil SHHCcv1 nudged down 0.05%, stainless steel SHSScv1 slid 0.68%, wire rod SWRcv1 tumbled 4%.
($1 = 7.2443 Chinese yuan)
Reporting by Amy Lv and Emily Chow; Editing by Sherry Jacob-Phillips and Varun H K
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