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BEIJING: Iron ore extended gains for a second consecutive session on Thursday on persistent support from fundamentals, but the momentum slowed as traders pondered downside risks from possibly falling demand in top consumer China.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) rose 0.99% to 921 yuan ($125.85) a metric ton, as of 0244 GMT, following a rise of 2.51% a day before.
The benchmark December iron ore on the Singapore Exchange was 0.14% higher at $121.65 a ton, as of 0300 GMT.
Low inventories, remaining solid demand, wide difference between spot and futures prices as well as improved sentiment from the stimulus policy continued to support prices of the key steelmaking ingredient, according to analysts.