BEIJING: Iron ore futures prices rebounded on Wednesday, bolstered by upbeat factory data and hopes of stimulus measures in top consumer China that could brighten the demand outlook.
The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) added 0.62percent to 816 yuan (USD118.55) a metric ton, as of 0155 GMT, following a drop of 0.8percent the day before. The benchmark May iron ore on the Singapore Exchange was 0.68percent higher at USD106.2 a ton, by 0145 GMT.
China’s factory activity grew at the fastest pace in a year in March, underpinned by improved demand, a welcome relief for an economy grappling with global supply chain strains and energy market volatility.
Meanwhile, China’s central bank pledged on Tuesday to maintain appropriately loose monetary policy, sparking hopes of the roll-out of stimulus policies that would help improve home consumption and counter external shocks.
That said, near-record high portside iron ore stocks limited price upside potential.
Coking coal and coke, other steelmaking ingredients, extended losses, down 2.89percent and 1.1percent, respectively, as heightened hopes of a quick end to the Iran war raised prospects of easing energy supply unrest.
President Donald Trump said the United States could end its military attacks on Iran within two to three weeks and that Tehran did not have to make a deal as a prerequisite for the conflict to wind down.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar was little changed, hot-rolled coil dipped 0.12percent, wire rod lost 0.64percent while stainless steel advanced 0.28percent.
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