SINGAPORE: Iron ore futures rose on Friday and were set for weekly gains, buoyed by expectation that top steelmaker China would ease its strict Covid-19 restrictions, lifting demand sentiment.
The most-traded January iron ore on China’s Dalian Commodity Exchange gained 0.8% to 776.5 yuan ($109.97) a tonne, as of 0215 GMT, rising about 5.2% so far in the week.
On the Singapore Exchange, the benchmark December iron ore was up 1.3% at $104.30 a tonne. China is set to announce an easing of its Covid quarantine protocols in the coming days and a reduction in mass testing, sources told Reuters, a marked shift in policy after anger over the world’s toughest curbs fuelled widespread protests.
Meanwhile, China reported a slight dip in new daily Covid-19 cases on Dec. 1, the National Health Commission said. Market sentiment has also been buoyed by China’s measures to support its struggling property sector, a key consumer of steel.
These measures should have a better chance of developing into stronger demand for steel and iron ore amid a shift away from strict adherence to the zero-Covid policy, ANZ said in a note.
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