BEIJING: Iron ore futures prices climbed on Friday to their highest levels in more than four months and headed for a weekly gain, as signs of recovery in steel consumption brightened demand outlook in top consumer China where hopes of more stimulus revived.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.69% higher at 840 yuan ($116.00) a metric ton, the highest since October 8, 2024.
The benchmark March iron ore on the Singapore Exchange was 0.34% higher at $109.05 a ton, as of 0338 GMT, also the highest since October 8, 2024.
Both benchmarks posted rises of around 3% so far this week.
Downstream steel consumption has showed signs of picking up with transaction volumes of construction steel products jumping by 44% on the week to 112,600 tons on Thursday, data from consultancy Mysteel showed, supporting ore prices.
Also buoying sentiment was China’s central bank, which vowed on Thursday to provide strong financial support for the healthy development of private economy and the growth of private enterprises.
Iron ore futures wobble
However, the average daily hot metal output slipped for a second straight week by 0.2% from the prior week to 2.28 million tons as of February 20, Mysteel survey showed, limiting gains.
Other steelmaking ingredients on the DCE gained, with coking coal and coke up 2.3% and 1.63%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange advanced.
Rebar rose 1.05%, hot-rolled coil edged up 0.96%, stainless steel ticked 0.95% higher while wire rod shed 0.23% .
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