BEIJING: Iron ore futures climbed on Monday, supported by solid demand and expectations of further property stimulus from top consumer China, although rising inventory levels curbed further gains.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 0.19% at 778.5 yuan ($108.39) a metric ton, as of 0230 GMT.
The benchmark September iron ore on the Singapore Exchange climbed 0.44% to $102.35 a ton.
Iron ore demand was bolstered by a wave of restocking by steelmakers ahead of mandated production curbs in northern China, aimed at improving air quality for the military parade on September 3 commemorating the end of World War Two.
Average daily hot metal output, a gauge of ore demand, edged 0.1% higher week-on-week to 2.41 million tons, as of August 14, data from consultancy Mysteel showed.
Hopes for more stimulus were rekindled after China’s central bank pledged on Friday to further improve the monetary policy framework, vowing to implement and fine-tune a moderately loose policy, amid continued weakness in the property market.
That strength persisted despite a fresh tariff threat from US President Donald Trump, who said he would unveil additional steel duties in the coming weeks.
“We expect China’s steel industry to be relatively immune to ongoing trade tensions with the US, with trade to other markets such as Europe and Asia picking up the slack,” ANZ analysts said.
Still, prices were limited by a pick-up in portside inventory, which climbed by 0.7% on the week to the highest since July 25 to 131.05 million tons by August 15, data from consultancy Steelhome showed.
Coking coal and coke, also steelmaking ingredients, eased 0.37% and 0.03%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were mixed.
Rebar lost 0.19%, wire rod nudged 0.03% lower while hot-rolled coil added 0.12% and stainless steel edged 0.08% higher.
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