BEIJING: Iron ore futures rose for a second consecutive session to a one-week high on Tuesday, supported by a weaker dollar and the start of restocking by Chinese steelmakers to maintain production in January.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 3.05% higher at 776 yuan ($107.17) a metric ton. It hit the highest since Nov. 11 at 779.5 yuan a ton in the afternoon trading session.
The benchmark December iron ore on the Singapore Exchange was 2.02% higher at $101.15 a ton, as of 0717 GMT, after touching the highest since Nov. 11 at $101.9 a ton.
A weaker dollar makes greenback-priced commodities less expensive for buyers holding other currencies.
“Data over the weekend showed that the issuance pace of local government debts has accelerated, indicating more capital available for property projects, boosting the ferrous market,” said Pei Hao, an analyst at international brokerage Freight Investor Services (FIS).
“Moreover, $100 a ton is a key level that traders have been closely monitoring as once prices fall below the level, buying interest for seaborne cargoes picked up even amid high portside stocks.”
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