SINGAPORE: Iron ore futures gained on Friday, buoyed by a raft of factors such as robust export data from top consumer China, speculation of economic stimulus, and persistently upbeat demand. The most-traded May iron ore on China’s Dalian Commodity Exchange closed 2.4% higher at 958.5 yuan ($133.86) per metric ton.
The benchmark contract grew 3.8% this week, recording its best week in five. On the Singapore Exchange, the benchmark January iron ore was up 0.9% at $133.9 a metric ton, as at 0730 GMT.
China’s exports grew for the first time in six months in November, suggesting factories in the world’s second-largest economy are attracting buyers through discount pricing to get over a prolonged slump in demand.
The country’s iron ore imports last month climbed 3.4% from October’s levels, customs data showed on Thursday.
China stocks edged up on Friday as investors awaited clues from upcoming policy meetings. There are talks of economic stimulus measures to further boost the economy.
Brazilian miner Vale, one of the world’s largest iron ore producers, held its production target for the second straight year, as it counts on stronger-than-expected Chinese demand.
Rio Tinto on Wednesday brought forward the start of production from its giant Simandou iron ore project to a year earlier, which will add around 5% to global seaborne supply.
“The stable output guidance from major producers would continue to support the upward rally of the raw material prices next year as well, given the expectations of recovering downstream demand,” ING analysts said in a report on Wednesday.
All of the steel benchmarks on the Shanghai Futures Exchange were up. The most-active rebar contract strengthened 1.3%, hot-rolled coil grew 1.8%, wire rod increased by 0.4% and stainless steel gained 1%. Among other steelmaking ingredients, Dalian coking coal was down 1.6% and coke was up 0.8%.
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