SINGAPORE: Iron ore futures rose on Monday after more cities in top steelmaker China eased strict Covid restrictions over the weekend, lifting demand sentiment. The most-traded January iron ore on China’s Dalian Commodity Exchange was up 3% at 800.0 yuan ($114.63) a tonne, as of 0215 GMT, after rising 4.1% in early trade to hit its highest since June 16. On the Singapore Exchange, the benchmark December iron ore was up 2.1% at $108.85 a tonne.
Beijing residents on Saturday cheered the removal of Covid-19 testing booths, while Shenzhen said it would no longer require commuters to present test results to travel, as an easing of China’s virus curbs gathered pace.
More Chinese cities including Urumqi in the far west announced an easing of coronavirus curbs on Sunday as China tries to make its zero-Covid policy more targeted and less onerous after unprecedented protests against restrictions last weekend.
Mainland China reported 30,014 new coronavirus cases for Dec. 4, compared with 31,824 new cases a day earlier. Market sentiment has also been buoyed by China’s recent moves to support the property sector, which should have a better chance of developing into stronger demand for steel and iron ore following the easing of Covid curbs, ANZ said in a note.
Asian shares extended their rally as investors hoped steps to unwind pandemic restrictions in China would eventually brighten the outlook for global growth and commodity demand, nudging the dollar down against the yuan.
The most-active rebar contract on the Shanghai Futures Exchange rose 2.1%, hot-rolled coil climbed 2.0%, wire rod gained 0.7%, and stainless steel advanced 2.0%. Dalian coking coal and coke rose 2.5% and 2.9%, respectively.
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