Dalian iron ore reached a contract high on Friday, while the Singapore benchmark price of the steelmaking ingredient hit a two-week peak, as hopes grew that top buyer China would roll out more measures to support its economy.
The most-traded May iron ore on China’s Dalian Commodity Exchange DCIOcv1 ended daytime trade 2% higher at 889.50 yuan ($129.29) a tonne, just below a contract high of 893 yuan, keeping it on track for a weekly gain of around 3%.
On the Singapore Exchange, benchmark March iron ore rose as much as 1.7 to $126.70 a tonne, its highest since Feb. 1.
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Hopes are high that Beijing will announce more economic stimulus measures at next month’s annual National People’s Congress session, analysts said.
Helping lift prices, China’s rose in January for the first time in a year, data showed on Thursday, as the end of the country’s zero-COVID regime, favourable property policies and market expectations for more stimulus measures boosted demand.
Adding to the upbeat mood, China’s leaders have declared a “decisive victory” over COVID-19.
Rebar on the Shanghai Futures Exchange SRBcv1 rose 1.4%, hot-rolled coil SHHCcv1 gained 1%, wire rod SWRcv1 added 0.2%, and stainless steel SHSScv1 climbed 0.4%.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)