SINGAPORE: Iron ore futures rose on Wednesday, driven by stronger-than-expected industrial output in China and ongoing support for the country’s ailing property sector.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) closed up 1% at 971 yuan ($134.07) per metric ton, after hitting its highest levels since May 2021 earlier in the session. The Singapore Exchange’s benchmark December iron ore was up 1.7% at $128.18 a ton as of 0752 GMT in its fourth session of gains.
China’s industrial output and retail sales growth beat expectations in October, but the underlying economic picture highlighted significant pockets of weakness with the crisis-hit property sector continuing to forestall a full-blown revival.
Prices were supported by expectations of an intangible stimulus-driven recovery in construction and manufacturing, and a more tangible decline in Australian and Brazilian shipments over the past week, said Atilla Widnell, managing director at Navigate Commodities.
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