BEIJING: Iron ore prices extended losses to a second straight session on Friday, and were on track for a second weekly decline, dragged down by elevated portside stocks in top consumer China, although signs of improving demand helped limit the drop.
By 0217 GMT, the most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) slipped 0.81% to 797 yuan ($115.85) a metric ton, losing 1.8% so far this week.
The benchmark May iron ore on the Singapore Exchange was 1.16% lower at $105.15 a ton as of 0107 GMT, recording a 2% decline so far this week.
Downward pressure from high portside stocks dominated trade, while the conflict between supply and demand remained muted, said analysts.
Iron ore inventory at 47 Chinese ports rose 0.5% week-on-week to 177.5 million tons by April 2, hovering near the record high of 179.47 million tons touched in mid-March, data from consultancy Mysteel showed.
Moreover, concerns that spot availability could increase if China’s state iron ore buyer and BHP make progress in negotiations over 2026 supply contract weighed on sentiment.
However, the downside was capped by signs of improving demand as some mills resumed production after equipment maintenance.
The average daily hot metal output, a gauge of iron ore demand, climbed 2.7% week-on-week to 2.37 million tons as of April 2, its highest since October 2025, per Mysteel data.
According to analysts at ship-tracking agency Kpler, “The ongoing conflict in the Middle East continues to exert indirect pressure on iron ore by driving up freight and fuel costs.”
Meanwhile, other steelmaking ingredients coking coal and coke eased 0.98% and 0.71%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were mixed.
Rebar shed 0.26%, hot-rolled coil dipped 0.18%, wire rod rose 1.97% and stainless steel added 0.81%.
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