BEIJING: Prices of iron ore futures clawed up towards the psychological level of $100 a metric ton on Monday, underpinned by firm near-term demand and revived hopes of further economic stimulus from top consumer China.
The benchmark December iron ore on the Singapore Exchange was up 2.78% at $99.4 a ton, as of 0700 GMT, after touching the intraday high at $100.3 a ton earlier the session. It fell by more than 5% last week.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.87% higher at 761 yuan ($105.08) a metric ton. Analysts said near-term demand for the key steelmaking ingredient remained strong, supporting prices.
The average daily hot metal output among steelmakers surveyed was up 0.8% week-on-week at 2.36 million tons, as of Nov 15, the highest since early August, data from consultancy Mysteel showed.
Shanghai said on Monday that it would reduce some taxes on real estate transactions, effective from Dec 1, a move that will support the local property market, according to a state media report.
Hopes resurfaced that Beijing may announce more stimulus in the coming months after a string of disappointing data in the property sector, the largest steel consumer in the world’s second-largest economy, despite a raft of stimulus unveiled since late-September. “With Beijing quite open about keeping its powder dry ahead of potentially higher tariffs in 2025, we think the possibility of additional stimulus measures is high,” ANZ analysts said in a note. “This should keep sentiment in the iron ore and steel industry relatively buoyant,” they added, reiterating short-term price target of $95 a ton.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 0.51% and 0.65%, respectively.
Steel benchmarks on the Shanghai Futures Exchange advanced. Rebar edged 0.06% higher, hot-rolled coil added 0.38%, wire rod climbed 0.53% and stainless steel edged up 0.15%.
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