BEIJING: Iron ore futures rallied on Thursday to their highest in five weeks, underpinned by better-than-expected economic data and the latest batch of stimulus measures in China, the world’s largest consumer of the steelmaking ingredient.
The most-traded iron ore futures on China’s Dalian Commodity Exchange (DCE) ended daytime trading 3.54% higher at 849 yuan ($116.47) a metric ton, the highest since Aug. 1.
The benchmark iron ore on the Singapore Exchange was 1.9% higher at $116.6 a metric ton, as of 0731 GMT, the highest since July 26. “The latest flurry of macroeconomic stimulus largely boosted sentiment,” analysts at Huatai Futures said in a note.
“If steel consumption improves further, demand for iron ore from steelmakers will be sustained.” The official purchasing managers’ index (PMI) in August rose to 49.7 from 49.3 a year before, according to the National Bureau of Statistics, staying below the 50-point level demarcating contraction from expansion. The reading was above a forecast of 49.4.
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