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Iron ore off the skids , at least for today

MANILA, Sept 13 (Reuters) – Prices of steel and iron ore regained some lost ground in China on Thursday after the United States invited Chinese officials for talks, spurring hopes of a deal to end a trade dispute between the world’s two largest economies.

Washington has sent an invitation to senior Chinese officials for talks in coming weeks, the White House’s top economic adviser said on Wednesday, as the Trump administration prepares to activate tariffs on $200 billion worth of Chinese goods.

The news helped stem selling in ferrous metals following steep losses in the past two days on worries over excess steel supply as China considers a flexible implementation of its production curbs.

Hot rolled coil rose 0.9 per cent to 4,006 yuan per tonne.

“With both parties scheduled to resume trade talks, it should be viewed in a positive light,” Stephen Innes, head of Asia-Pacific trading at OANDA brokerage, said in a note to clients.

But the limited gains in rebar prices suggest many in the market remain cautious over the possibility of modified production curbs in China.

The country is considering allowing its northern provinces to decide individual output cuts by heavy industry to rein in emissions during the winter, a source involved with the plan said on Tuesday.

“Although we have not had an official confirmation of this directive just yet, output enforcement will likely not be as strict should regional authorities be charged with monitoring output,” said INTL FCStone commodity consultant Edward Meir.

 

 

Reuters

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