Iron ore falls on rising inventories, anti-dumping measures

By Ruth Chai

SINGAPORE, April 7 (Reuters) - Iron ore futures fell on Tuesday as rising inventories and fresh anti-dumping measures on Chinese finished steel products weighed on prices, although hopes of stronger demand after Beijing called for faster energy-related construction capped losses.

The most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 declined 0.44% to 797.5 yuan ($116.04) a metric ton.

The benchmark May iron ore SZZFK6 on the Singapore Exchange was 0.22% lower at $106.4 a ton as of 0715 GMT.

Iron ore inventories at major Chinese ports increased 0.65% week-on-week, according to data from consultancy Steelhome, despite rising hot metal output, highlighting difficulties in drawing down stockpiles amid weakening fundamental support.

Meanwhile, Vietnam imposed a temporary anti-dumping levy of up to 27.83% on some Chinese hot-rolled coil steel products from April 17, raising concerns over demand for steelmaking feedstock.

However, the downside was curbed by stronger demand as Chinese President Xi Jinping called for accelerated planning and construction of a new energy system to safeguard the country's energy security as the Middle East war continues.

This will include construction of the world's largest hydropower dam on the eastern rim of the Tibetan Plateau, supporting the prices of raw materials such as iron ore.

Other steelmaking ingredients on the DCE fell on Tuesday, with coking coal DJMcv1 and coke DCJcv1 down 1.16% and 0.72%, respectively.

Steel benchmarks on the Shanghai Futures Exchange also eased. Rebar SRBcv1 shed 0.29%, hot-rolled coil SHHCcv1 lost 0.37% and wire rod SWRcv1 retreated 0.39%, while stainless steel SHSScv1 fell 0.11%.

($1 = 6.8729 yuan)