Iron ore futures prices climbed on Monday to their highest in two weeks, driven by firm near-term demand and revived hopes of stimulus from top consumer China after a raft of weak data.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade 1.81% higher at 788.5 yuan ($110.97) a metric ton, its highest level since November 3.
The benchmark December iron ore (SZZFZ5) on the Singapore Exchange rose 1.57% to $104.2 a ton, as of 0715 GMT, its highest level since November 4.
China will strengthen fiscal policy over the next five years, the country’s finance minister said on Saturday in an interview with Xinhua News Agency.
The world’s second-largest economy is on track to achieve its annual growth target of around 5%, but a batch of weak data has underlined challenges ahead and reignited hopes of stimulus from a politburo meeting in December.
Meanwhile, an unexpected improvement in demand has supported a rebound in ore prices, analysts at broker Zhenxin Futures said in a note.
The average daily hot metal output, a gauge of iron ore demand, snapped six straight weeks of decline and climbed 1.1% on-week to a three-week high of 2.37 million tons, as of November 13, data from consultancy Mysteel showed.
Price gains were still limited though, due to pressure from swelling portside inventories and rising shipments.
Other steelmaking ingredients coking coal NYMEX:ACT1! and coke (DCJcv1) climbed 0.75% and 1.76%, respectively.
Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar RBF1! rose 1.64%, hot-rolled coil EHR1! jumped 1.57%, wire rod (SWRcv1) ticked 0.52% higher and stainless steel HRC1! nudged up 0.04%.
Source: Reuters
