Dalian iron ore futures rose on Monday, extending gains to a fourth consecutive session, as hopes of stronger demand in top steelmaker China supported market sentiment.
The most-traded May iron ore on China’s Dalian Commodity Exchange ended day-time trade 1.0% higher to 894.0 yuan ($130.35), after hitting a contract high of 898.5 yuan earlier in the session.
On the Singapore Exchange, the benchmark March iron ore was up 0.2% at $125.80 a tonne, as of 0715 GMT.
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The most-active rebar contract on the Shanghai Futures Exchange edged up 0.5%, hot-rolled coil gained 0.5%, while wire rod fell 0.3%, and stainless steel gave up 0.1%.
Signs of stabilisation in the property market helped lift iron ore futures, after China’s home prices held steady in January, following declines for the past 16 months, ANZ Research said in a note.
China’s new home prices rose in January for the first time in a year, official data showed last week, as the end of the zero-COVID regime, favourable property policies and market expectations for more stimulus measures boosted demand.
Investors are optimistic that the Chinese government will announce further economic stimulus measures at the upcoming National People’s Congress session in early March.
Currently, with the supply of iron ore relatively tight and as demand for the replenishment of inventories gradually rises due to the resumption of steel mill production in top steelmaker China, ore prices are expected to continue rising, Huatai Futures said in a research note.
Asian shares edged up on Monday as a U.S. holiday made for slow trading ahead of minutes of the latest Federal Reserve meeting and a reading on core inflation that could add to the risk of interest rates heading higher for longer.
Dalian coking coal DJMcv1 and coke DCJcv1rose 2.2% and 1.7% respectively.
Source: Reuters (Reporting by Matthew Chye; Editing by Nivedita Bhattacharjee)