Iron ore rangebound as investors weigh Sino-US trade talks, slow demand

Beijing: Iron ore futures traded in a tight range on Friday as investors weighed prospects of easing Sino-U.S. trade tensions against seasonally weak demand from top consumer China.

The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) traded 0.43 per cent lower at 697 yuan ($96.14) a metric ton, as of 0241 GMT.

While the benchmark June iron ore on the Singapore Exchange was up 0.45 per cent at $96.95 a ton.

U.S. President Donald Trump predicted that punitive U.S. tariffs on Beijing of 145 per cent would likely come down, the latest sign of a softening tone between the two superpowers.

The United States have unveiled details of a new trade agreement with Britain.

But analysts and traders maintained a cautious stance ahead of the Sino-U.S. talks this weekend.

While near-term ore demand remained resilient, signs of weakening downstream steel consumption have threatened to hinder any upside room, said analysts.

Average daily hot metal output - typically used to gauge iron ore demand - nudged 0.1 per cent higher to 2.46 million tons week-on-week, as of May 8, the highest since October 2023, a survey from consultancy Mysteel showed.

Other steelmaking ingredients on the DCE lost further ground, with coking coal and coke down 1.23 per cent and 1.15 per cent , respectively.

Steel benchmarks on the Shanghai Futures Exchange retreated. Rebar shed 0.98 per cent , hot-rolled coil lost 0.75 per cent , wire rod fell 1.95 per cent and stainless steel edged 0.16 per cent lower.