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Steel, Iron Ore Mark Second Losing Session Following Recent Rally

August 4, 2016 at 20:36 by Brent Lantzy

The most active September contract on the Dalian Commodity Exchange (DCE) closed down 7.5 yuan (1.55%) on Thursday to 475.0 yuan per metric ton, marking the second negative session for the contract following a 3 month high of 489.0 yuan reached on Tuesday.

Shanghai Futures Exchange (SHFE) rebar for the highest volume October contract settled down 34 yuan to 2,461 yuan per ton, after touching a two week high of 2,529 yuan on Tuesday.

The most active October SHFE hot rolled coils contract settled down by 34 yuan to 2,635 yuan per ton.

Iron ore for delivery to China’s Tianjin port was unchanged at $60.70 per ton on Wednesday, according to The Steel Index.

Benchmark 62% fines for delivery to the Qingdao port fell slightly to $61.67 per ton on Wednesday, according to data provided by Metal Bulletin.

Port stocks stood at 106.05 million tons on July 29, according to data tracked by SteelHome Consultancy.

Sanford C. Bernstein & Co., an investment research firm, has said iron ore could be boosted over the next year by increased steel production underpinned by expanded credit in China.

The manufacturing purchasing managers index increased to 50.6 in July from 48.6 in June, according to data provided by Caixin Media and Markit Economics. The official PMI for July fell slightly to 49.9 from 50 in June. Numbers below 50 are meant to indicate deteriorating conditions.

Macquarie Group Ltd. has expressed concern about the fundamental support for the recent move higher, as some traders continue to remain skeptical about surges unconnected to obvious physical factors.

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