BEIJING: Iron ore futures extended its rally to a more than three-month peak on Wednesday, fuelled by a bullish demand outlook buoyed by China’s recent support on its property sector.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 2.4% to 918 yuan ($126.83) a metric ton by 0152 GMT, its highest since Feb. 20.
The contract has gained for five consecutive sessions. The benchmark June iron ore on the Singapore Exchange rose 0.9% to $121.9 a ton. China last Friday announced “historic” steps to stabilise its crisis-hit property sector, with the central bank facilitating 1 trillion yuan ($138 billion) in extra funding and easing mortgage rules, among others.
The property sector is a major consumption pillar for steel and has therefore raised investors’ prospect for steelmaking ingredients. Other steelmaking ingredients on the DCE climbed, with coking coal advancing 3.7% and coke up 3.6%.
Steel benchmarks on the Shanghai Futures Exchange were mostly up. Rebar rose 1.5%, hot-rolled coil added 1.2%, wire rod up 1.1%, while stainless steel eased 0.2%.
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