BEIJING: Iron ore futures prices rose on Monday, aided by revived hopes of stimulus from top consumer China after a raft of weak data, and firm near-term demand.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) climbed 0.84percent to 781 yuan (USD109.93) a metric ton by 0230 GMT. It touched its highest level since November 3 at 785 yuan earlier in the session.
The benchmark December iron ore on the Singapore Exchange was 0.69percent higher at USD103.3 a ton, as of 0220 GMT, after hitting its highest level since November 7 at USD103.55 earlier in the day. China will strengthen fiscal policy over the next five years, the country’s finance minister said on Saturday in an interview with Xinhua News Agency.
November generally lacks macro policy guidance. The world’s second-largest economy is on track to achieve its annual growth target of around 5percent, but a batch of weak data has underlined challenges ahead and reignited hopes of stimulus from a politburo meeting in December.
Meanwhile, an unexpected improvement in demand has supported a rebound in ore prices, analysts at broker Zhenxin Futures said in a note. The average daily hot metal output, a gauge of iron ore demand, snapped six straight weeks of falls and climbed 1.1percent week-on-week to a three-week high of 2.37 million tons, as of November 13, data from consultancy Mysteel showed.
That said, pressure from swelling portside inventories and rising shipments limited price gains. Coking coal and coke, other steelmaking ingredients, climbed 0.21 percent and 0.74 percent, respectively.
Steel benchmarks on the Shanghai Futures Exchange moved sideways. Rebar rose 0.98 percent and hot-rolled coil jumped 0.92percent, while wire rod ticked 0.18percent lower and stainless steel shed 0.12percent.
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