BEIJING: Prices of iron ore futures climbed for a second straight session on Wednesday, as Goldman Sachs raised its average price forecast for the fourth quarter of this year to USD95 a metric ton from USD90 a ton previously.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) rose 0.78 percent to 777.5 yuan (USD108.70) a ton by 0151 GMT. The benchmark October iron ore on the Singapore Exchange was up 0.63percent at USD103.1 a ton, as of 0141 GMT.
Goldman Sachs maintained its 2026-end price forecast of USD80 a ton. While prices have rebounded, ore demand has not showed signs of any improvement, analysts at broker First Futures said, cautioning about potential downside risks in the short term.
Iron ore demand has been suppressed this week as steelmakers in top Chinese production hub Tangshan were required to curb production to ensure better air quality for a military parade in Beijing to commemorate the end of World War Two.
Consumption of the key steelmaking ingredient is expected to pick up after the removal of production restrictions from September 4, said analysts. Coking coal and coke, other steelmaking ingredients, shed 0.4 percent and 0.09 percent, respectively.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar dipped 0.26 percent, hot-rolled coil lost 0.15 percent, stainless steel fell 0.73 percent, while wire rod added 0.18 percent.
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