Iron ore ticks up, but posts weekly loss on tariff woes
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FILE PHOTO: Workers are seen by a freight train at the iron ore terminal at Dalian Port, Liaoning province, China September 21, 2018. Picture taken September 21, 2018. REUTERS/Muyu Xu/File Photo
By Michele Pek
SINGAPORE (Reuters) - Dalian iron ore futures logged a weekly fall on Friday, despite snapping a nine-session losing streak on the day, weighed down by reports of steel production cuts in China and an intensifying trade war between Washington and Beijing.
The most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) added 0.19% to 774 yuan ($106.81) a metric ton. The contract fell 3.49% this week.
The benchmark April iron ore on the Singapore Exchange was 0.04% higher at $100.4 a ton, losing 1.99% so far this week as of 0712 GMT.
Beijing's efforts to support economic growth buoyed sentiment in commodity markets, said ANZ analysts.
China unlocked more fiscal stimulus on Wednesday, vowing greater efforts to support consumption and boost domestic demand.
Chinese officials on Thursday left the door open to more stimulus measures on top of those announced at this week's annual parliament meeting if economic growth veered off track.
These moves follow fresh trade measures, as Washington on Tuesday imposed an extra 10% duties on Chinese goods, taking the cumulative tariff to 20% and drawing Beijing's retaliation.
Meanwhile, steel production cuts in China may increase iron ore supply, intensifying pressure on ore prices, said Hexun Futures.
China will restructure its giant steel industry through output cuts, although it did not announce any target in its most recent intervention to address over-capacity in the sector.
Still, China's iron ore imports in the first two months of 2025 fell by 8.4% year-on-year, curbed by weather-related supply disruption in major producer Australia.
Other steelmaking ingredients on the DCE rose, with coking coal and coke advancing 1.79% and 1.1%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange fell. Rebar eased 0.67%, hot-rolled coil lost 0.85% and wire rod shed 0.14%. Stainless steel added 0.34%.
($1 = 7.2467 Chinese yuan)
(Reporting by Michele Pek; Editing by Subhranshu Sahu and Sumana Nandy)
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