SINGAPORE: Dalian iron ore futures snapped a two-day losing streak on Friday, the last trading day of the year, driven by market optimism fuelled by expectations of government stimulus measures.
The most-traded May iron ore on China’s Dalian Commodity Exchange rose 0.4% to 980.5 yuan ($138.13) per metric ton as of 0320 GMT.
The contract is poised for a fifth consecutive month of gains with a 7.4% climb. It is also anticipated to conclude the year with a 55.9% jump, rising for the second consecutive year.
On the Singapore Exchange, the benchmark Febuary iron ore was up 1.3% at $137.24 a metric ton. For the month, the contract is poised for a 7.4% rise, also marking its fifth consecutive month of gains.
The benchmark contract also is anticipated to conclude the year with a gain of 26.4%.
China’s manufacturing activity likely contracted for the third consecutive month, a Reuters poll showed on Thursday, weighed by soft demand for manufactured goods.
China’s central bank said on Thursday it would step up macroeconomic policy adjustments to support the economy and promote a rebound in prices, amid signs of rising deflationary pressures.
The country will strive to expand domestic demand, ensure a speedy economic recovery and promote stable growth, according to an interim report on China’s 14th five-year plan published by parliament on Wednesday.
Iron ore futures slide
As part of the plan, China will intensify market-oriented reforms to boost development.
Steel benchmarks on the Shanghai Futures Exchange were mixed.
The most-active rebar contract and hot-rolled coil were last unchanged.
Meanwhile, wire rod and stainless steel lost 0.3% and 2% respectively.
Other steelmaking ingredients, Dalian coking coal and coke, declined 0.8% and 0.3%, respectively.
Source: Brecorder
