MARKET OVERVIEW - Iron ore remains flat as low shipments exert pressure on weak demand and high stocks

Forex - Iron ore futures moved within a narrow range as they weighed the sluggish shipments against a lifeless demand and high port stocks in China. The May iron ore contract on the Dalian Commodity Exchange (DCE) finished the morning session up 0.25% at 798 yuan/ton ($109.56). The benchmark January iron ore on the Singapore Exchange rose 0.24% to $105/ton at 06:37 GMT.

An analyst indicated that ore prices are likely to move between 770-820 yuan/ton in the near term, stating, "While supply pressure has eased somewhat due to recent declines in shipments, demand has persisted due to relatively high hot metal production, despite a slight decrease. High stocks on the port side continue to pose a barrier."

Analysts and market traders noted that concerns over supply disruptions from a major supplier in Australia helped boost the prices of key steel production components in trading yesterday afternoon. On the DCE, coke coal rose 0.75%, while coking coal fell 0.11%.

Steel indicators on the Shanghai Futures Exchange saw mixed movements. Rebar increased by 0.24%, and hot-rolled coil rose by 0.14%, while wire rod declined by 0.14% and stainless steel fell by 0.19%.