SINGAPORE: Prices of Dalian iron ore futures rose on Friday and were poised for a weekly gain on falling iron ore and steel inventories, outweighing Taiwan anti-dumping duties.
The most-traded September iron ore contract on China鈥檚 Dalian Commodity Exchange (DCE) ended morning trade 1.85% higher at 715.5 yuan ($99.78) a metric ton.
The contract has gained 4.67% so far this week.
The benchmark July iron ore on the Singapore Exchange was 1.16% higher at $94.4 a ton as of 0414 GMT, rising 1.01% so far this week.
鈥淔alling iron ore port inventories are a tailwind, providing downside protection to iron ore prices,鈥 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.
Mysteel data showed finished steel inventories held by Chinese traders continued to fall from June 20 to 26, marking the seventh consecutive weekly decline.
Iron ore dips on increased supply; dollar strength caps gains
However, the pace of the fall slowed compared to the week before, which could be attributed to increased production at domestic mills, Mysteel added.
The U.S. dollar tumbled to near a 3-1/2 year low amid the possible early replacement of U.S. Federal Reserve Chair Jerome Powell, sparking concerns over an erosion of the central bank鈥檚 independence.
A weaker greenback makes dollar-denominated assets cheaper for holders of other currencies.
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 3.16% and 1.77%, respectively.
Steel benchmarks on the Shanghai Futures Exchange mostly gained ground. Rebar and hot-rolled coil strengthened 0.78%, wire rod climbed 1.28% and
stainless steel fell 0.16%.