SINGAPORE: Iron ore futures prices recovered on Thursday from the previous session’s losses, as investors awaited clues on policy easing from a key economic meeting in top consumer China.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.68% higher at 817.0 yuan ($112.49) a metric ton.
The benchmark January iron ore on the Singapore Exchange was 1.02% higher at $105.65 a ton, as of 0330 GMT.
“Iron ore prices remained steady as traders weighed the impact of additional stimulus from China and easing monetary policy against other structural headwinds,” said ANZ analysts in a note.
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The news weighed on sentiment in industrial metals markets as a weaker yuan could lead to capital outflows and a declining equity market, said ANZ.
Earlier in the week, China’s Politburo had vowed to switch to an “appropriately loose” monetary policy to spur economic growth.
The top policymakers’ statement sent a “positive policy signal” that boosted iron ore prices, said Chinese financial information site Hexun Futures.
Analysts say markets are looking forward to Beijing’s annual Central Economic Work Conference, which is expected to be held this week. But detailed measures remain unclear.
While iron ore is currently boosted by official policies and winter storage and replenishment by steel mills, high portside stocks and long-term demand concerns limit the upside, Hexun said.
Other steelmaking ingredients on the DCE firmed, with coking coal and coke up 2.61% and 2.24%, respectively.
Steel benchmarks on the Shanghai Futures Exchange regained their footing. Rebar advanced 0.73%, hot-rolled coil edged nearly 0.3% higher, wire rod strengthened 0.55% and stainless steel climbed 1.04%.
Source: Brecorder
