BEIJING: Iron ore futures rose on Thursday as investor sentiment was buoyed by sustained hopes of more stimulus measures from top consumer China and persistent pre-holiday restocking by steel mills in the world’s second-largest economy.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.97% higher at 784.5 yuan ($107.48) a metric ton.
The benchmark January iron ore on the Singapore Exchange was 0.6% higher at $101.7 a ton, as of 0406 GMT.
Efforts will continue in 2025 to stabilise and prevent further declines in China’s real estate market, China Construction News reported, citing a work conference held by the housing regulator on Tuesday and Wednesday.
That, coupled with lingering expectations of Beijing unveiling more stimulus, lifted broad market sentiment, supporting the key steelmaking ingredient, said analysts. “Steelmakers continued to replenish feedstocks, with inventories of imported iron ore at mills increasing further,” analysts at Sinosteel Futures said in a note.
Iron ore rises on pre-holiday restocking, China stimulus hopes
“Supply is expected to seasonally slow in January, which will help ease pressure of high portside stocks.”
Chinese steelmakers usually build up stocks ahead of the Chinese New Year, which starts from Jan. 28, to meet production needs during and after the holiday. Other steelmaking ingredients on the DCE were mixed, with coking coal up 0.26% and coke down 0.25%.
Steel benchmarks on the Shanghai Futures Exchange strengthened. Rebar added 0.51%, hot-rolled coil advanced 0.58%, wire rod gained 0.79% and stainless steel ticked up 0.35%.
Source: Brecorder
