Iron ore posts largest weekly gain in six on falling inventories
SINGAPORE: Iron ore futures rose on Friday, posting their largest weekly gain since May 16 on falling iron ore and steel inventories, outweighing Taiwan's anti-dumping duties.
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) ended daytime trade 1.99% higher at 716.5 yuan ($99.95) a metric ton.
The contract gained 1.64% this week, snapping two consecutive weeks of losses.
The benchmark July iron ore on the Singapore Exchange was 1.43% higher at $94.65 a ton as of 0801 GMT, rising 1.11% this week, rallying after five consecutive weeks of losses.
'Falling iron ore port inventories are a tailwind, providing downside protection to iron ore prices,' said ANZ analysts.
Total stockpiles of iron ore across ports in China fell 0.74% week-on-week to 133.6 million tons as of June 27, according to SteelHome data.
Iron ore dips on increased supply; dollar strength caps gains
Mysteel data showed finished steel inventories held by Chinese traders continued to fall from June 20 to 26, marking the seventh consecutive weekly decline.
However, the pace of the fall slowed compared to the week before, which could be attributed to increased production at domestic mills, Mysteel added.
Meanwhile, China stocks are set to hit their biggest weekly gain in more than seven months, with the Mideast ceasefire buoying investor sentiment.
Still, China's industrial profits swung back into sharp decline in May from a year earlier, as sluggish domestic demand from a prolonged property crisis squeezed profits in the country's industrial firms, compounded by a price war among automakers.
On the trade front, Taiwan is set to impose anti-dumping duties as high as 20.15% on Chinese-made hot-rolled steel starting on July 3.
Other steelmaking ingredients on the DCE rose, with coking coal and coke up 4.89% and 2.52%, respectively.
Steel benchmarks on the Shanghai Futures Exchange mostly gained ground. Rebar and hot-rolled coil strengthened around 1%, wire rod climbed 1.65% and stainless steel fell 0.04%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
The hidden cost of hefty borrowing
While infrastructure projects have brought critical improvements in energy generation, transport connectivity and logistics, they have also saddled Pakistan with an increasing debt burden. photo: file Listen to article Pakistan's recent move to secure a $3.3 billion loan package from Chinese banks has once again placed its economic dependence on Beijing in sharp focus. The deal, which includes a $2 billion syndicated loan and a $1.3 billion refinancing arrangement, is intended to provide much-needed short-term relief to Pakistan's low foreign exchange reserves. In June 2025, following the disbursement of these funds, the reserves rose to nearly $15 billion, offering a temporary cushion equivalent to about two months' worth of imports. However, beneath the surface of this fiscal reprieve lies a complex web of financial vulnerabilities and strategic risks that could undermine Pakistan's long-term economic sovereignty. China has emerged as Pakistan's largest bilateral lender, with outstanding loans exceeding $29 billion. Much of this lending is linked to infrastructure development under the China-Pakistan Economic Corridor (CPEC), a central component of China's Belt and Road Initiative (BRI). While CPEC projects have brought critical improvements in energy generation, transport connectivity, and logistics, they have also saddled Pakistan with an increasing debt burden. Many of these loans are non-concessional, meaning they carry higher interest rates. Additionally, several Chinese-backed energy projects include capacity payment clauses that obligate Pakistan to make fixed payments regardless of power consumption, leading to billions in annual outflows. This contractual structure places sustained pressure on Pakistan's already overextended public finances. The current loan deal underscores a pattern that has developed in recent years: instead of retiring its obligations, Pakistan has increasingly relied on refinancing maturing Chinese debt. While this approach alleviates immediate liquidity crises, it does little to improve long-term sustainability. Refinancing delays the inevitable, creating a revolving door of repayments that expands the debt stock without addressing underlying structural weaknesses. As Pakistan's access to Western credit diminishes due to poor reform implementation and global risk perceptions, Chinese loans appear increasingly attractive because they are disbursed quickly and without stringent conditions. However, this convenience increases China's leverage over Pakistan – not only economically but diplomatically. The growing financial relationship shapes Pakistan's foreign policy calculus, particularly in matters related to India, the United States, and broader regional alignments. Efforts to diversify external financing have yielded some support. The World Bank recently approved a ten-year, $20 billion support package aimed at structural reform and development financing. Additionally, Pakistan remains under the IMF's Extended Fund Facility, which offers periodic tranches of funding subject to conditions such as tax reform, energy subsidy cuts, and improved fiscal management. Yet successive governments have struggled to meet these reform benchmarks, weakening credibility and leading to repeated interruptions in disbursement. In contrast, Chinese funding is politically less sensitive, often directed at visible infrastructure projects and devoid of institutional scrutiny, which makes it more attractive to policymakers under short-term political pressure. Without internal reforms, external financing — no matter how generous or immediate — cannot create sustainable stability. The challenge is not merely about securing foreign funds but about using those funds to build institutional capacity, diversify the economy, and reduce dependency. Continued borrowing without a parallel commitment to reform merely postpones the crisis and locks Pakistan into a cycle of debt and vulnerability. Moreover, the bilateral nature of Chinese lending can undermine Pakistan's position in global credit markets. Multilateral lenders and private investors closely monitor sovereign debt profiles, and overreliance on one creditor can affect Pakistan's risk rating, borrowing costs, and diplomatic flexibility. Questions around repayment capacity, especially in light of high annual debt servicing requirements, may erode investor confidence and reduce future funding opportunities. The latest $3.3 billion package offers short-term relief but does little to change the fundamentals. It is, in essence, a temporary fix that masks a growing problem. Every loan signed without reform commitments increases Pakistan's exposure to future crises. To move beyond this precarious cycle, Pakistan must take control of its economic trajectory. That means implementing broad-based reforms to expand the tax base, restructure public enterprises, improve energy sector efficiency, and enhance transparency in debt contracting. Only then can external financing serve as a tool for growth rather than a source of dependency. Multilateral lenders may impose tough conditions, but their long-term orientation and oversight mechanisms offer a pathway to resilience that bilateral loans alone cannot provide. In the short run, the Chinese loan provides breathing space and may help avoid immediate balance-of-payments crises. But in the long run, the real question is whether this dependence on a single creditor compromises Pakistan's ability to make independent economic choices. For Pakistan to secure a sustainable future, it must shift from firefighting to reform, from short-term relief to long-term resilience. The time to act is now. The writer is a member of PEC and holds a Master's in Engineering
Express Tribune
4 hours ago
- Express Tribune
Trump claims 'very wealthy' group to buy TikTok amid US ban threat
Listen to article President Donald Trump said Sunday a group of buyers had been found for TikTok, which faces a looming ban in the United States due to its China ties, adding he could name the purchasers in two weeks. "We have a buyer for TikTok, by the way," Trump said in an interview on Fox's Sunday Morning Futures with Maria Bartiromo. "Very wealthy people. It's a group of wealthy people," the president said, without revealing more except to say he would make their identities known "in about two weeks." The president also said he would likely need "China approval" for the sale, "and I think President Xi (Jinping) will probably do it." TikTok is owned by China-based internet company ByteDance. A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's inauguration on January 20. But the Republican, whose 2024 election campaign relied heavily on social media and who has said he is fond of TikTok, put the ban on pause. In mid-June Trump extended a deadline for the popular video-sharing app by another 90 days to find a non-Chinese buyer or be banned in the United States. Tech experts quickly described the TikTok kerfuffle as a symbol of the heated US-China tech rivalry. While Trump had long supported a ban or divestment, he reversed his position and vowed to defend the platform -- which boasts almost two billion global users -- after coming to believe it helped him win young voters' support in the November election. "I have a little warm spot in my heart for TikTok," Trump told NBC News in early May. "If it needs an extension, I would be willing to give it an extension." Now after two extensions pushed the deadline to June 19, Trump has extended it for a third time. He said in May that a group of purchasers was ready to pay ByteDance "a lot of money" for TikTok's US operations. The previous month he said China would have agreed to a deal on the sale of TikTok if it were not for a dispute over Trump's tariffs on Beijing. ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be "subject to approval under Chinese law." .
Business Recorder
7 hours ago
- Business Recorder
Trump says ‘very wealthy' group to buy TikTok
WASHINGTON: President Donald Trump said Sunday a group of buyers had been found for TikTok, which faces a looming ban in the United States due to its China ties, adding he could name the purchasers in two weeks. 'We have a buyer for TikTok, by the way,' Trump said in an interview on Fox's Sunday Morning Futures with Maria Bartiromo. 'Very wealthy people. It's a group of wealthy people,' the president said, without revealing more except to say he would make their identities known 'in about two weeks.' The president also said he would likely need 'China approval' for the sale, 'and I think President Xi (Jinping) will probably do it.' TikTok is owned by China-based internet company ByteDance. Trump extends deadline for TikTok sale by 90 days A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's inauguration on January 20. But the Republican, whose 2024 election campaign relied heavily on social media and who has said he is fond of TikTok, put the ban on pause. In mid-June Trump extended a deadline for the popular video-sharing app by another 90 days to find a non-Chinese buyer or be banned in the United States. Tech experts quickly described the TikTok kerfuffle as a symbol of the heated US-China tech rivalry. While Trump had long supported a ban or divestment, he reversed his position and vowed to defend the platform – which boasts almost two billion global users – after coming to believe it helped him win young voters' support in the November election. 'I have a little warm spot in my heart for TikTok,' Trump told NBC News in early May. 'If it needs an extension, I would be willing to give it an extension.' Now after two extensions pushed the deadline to June 19, Trump has extended it for a third time. He said in May that a group of purchasers was ready to pay ByteDance 'a lot of money' for TikTok's US operations. The previous month he said China would have agreed to a deal on the sale of TikTok if it were not for a dispute over Trump's tariffs on Beijing. ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be 'subject to approval under Chinese law.'
