Benchmark iron ore futures in China inched higher and moved in a narrow range in early trade on Wednesday, contained by both demand and supply uncertainties amid China's robust steel consumption and global coronavirus concerns.
The most-traded September contract of iron ore futures on the Dalian Commodity Exchange inched up 0.2% to 772 yuan ($109.18) a tonne as of 0258 GMT.
Spot prices for iron ore with 62% iron content for delivery to China fell to $105 a tonne on Tuesday.
“Weekly shipments (of iron ore) is still fluctuating, and the intensifying pandemic in Brazil has been the focus of the market,” Huatai Futures wrote in a note.
It also noted that utilisation rates at blast furnaces started to weaken but still remain at high levels.
Weekly capacity utilisation rates at blast furnaces in 163 mills in China dropped to 79.3% on June 5, down slightly from 79.6% a week earlier, data compiled by Mysteel consultancy showed.
Steel rebar on the Shanghai Futures Exchange, for October delivery SRBcv1 rose 0.3% to 3,615 yuan a tonne.
Hot-rolled coil futures gained 0.7% to 3,554 yuan a tonne.
FUNDAMENTALS
* Other steelmaking ingredients rose, with Dalian coking coal DJMcv1 increasing 0.2% to 1,191 yuan a tonne and coke up 0.6% to 1,956 yuan a tonne.
* Shanghai stainless steel futures SHSScv1, for August delivery, dropped 0.9% to 12,870 yuan per tonne.
* China's May factory gate prices fell by the sharpest rate in more than four years, underscoring pressures on the manufacturing sector as the COVID-19 pandemic reduces trade flows and global demand.
* China's coal mining hub Shanxi will shut down all small-sized coal mines, with annual capacity below 600,000 tonnes, in the province by the end of 2020.
Source:Reuters
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