Dalian iron ore logs weekly gain on stronger China demand outlook

Dalian iron ore futures rose on Friday to log a small weekly gain, aided by resilient demand in top consumer China, even as investors fretted over mounting trade tensions between the United States and China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) TIO1! ended daytime trade 0.69% higher at 806.5 yuan ($111.26) a metric ton, posting a weekly gain of 0.31%.
The benchmark February iron ore (SZZFG5) on the Singapore Exchange traded 1.34% higher at $105.1 a ton as of 0707 GMT. The contract has lost 0.14% so far this week.
China’s factory activity likely expanded for a fourth month in January, a Reuters poll showed, even as the country braces for U.S. tariff hikes.
Moreover, China’s consumer trade-in scheme boosted consumption growth by more than 1% in 2024, Vice Commerce Minister Sheng Qiuping said on Friday.
Total portside ore stockpiles dipped 0.17% from the previous week to 145.65 million tons, as of Jan. 24, according to Steelhome data.
On Thursday, Washington introduced a bill that would revoke China’s preferential trade status with the U.S., phase in steep tariffs and end the “de minimis” exemption for low-value Chinese imports.
U.S. President Donald Trump has also vowed more duties against Chinese imports.
Despite rising trade tensions, Trump said his conversation with Chinese President Xi Jinping was “friendly” and thought he could reach a trade deal with China.
China and Hong Kong stocks rose on Friday, on upbeat sentiment after Trump’s comments on his recent call with Xi, in addition to Beijing’s plan to encourage insurers to purchase shares listed on the mainland.
Other steelmaking ingredients on the DCE declined, with coking coal NYMEX:ACT1! and coke (DCJcv1) closing down 1.39% and 0.93%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange gained. Rebar RBF1! gained around 0.6%, hot-rolled coil EHR1! rose 0.35%, wire rod (SWRcv1) ticked up 0.14%, while stainless steel HRC1! dropped 0.23%.
Source: Reuters