SINGAPORE: Iron ore futures prices hit a four-month high on Friday and were set for weekly gains, as steel demand in top consumer China recovered after the Lunar New Year holidays, while support for the property sector also buoyed investor sentiment.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.48% higher at 822 yuan ($112.86) a metric ton, gaining 1.61% so far this week. Earlier in the session, prices hit 825 yuan, its highest since October 8.
The benchmark March iron ore on the Singapore Exchange was 0.86% higher at $106.85 a ton at 0331 GMT, logging a weekly rise of 0.23% so far.
Production at steel mills has resumed after the Lunar New Year holidays, improving short-term iron ore demand and supporting prices, Chinese consultancy Hexun Futures said in a note.
Production among Chinese blast furnace steel producers rose this week, as some mills lifted production after operations resumed following maintenance, according to Chinese consultancy Mysteel.
Dalian iron ore extends gains on Trump tariff delay
The Shenzhen government has made 10 new appointments at China Vanke, in another move to tighten control over the property development.
Investors cheered last month’s top management reshuffle, hoping government support would bring some stability to the struggling property sector.
Still, a trade war presents the biggest challenge to the iron ore and steel market, ANZ analysts said in a note.
US President Donald Trump imposed sweeping tariffs of 10% on Tuesday, prompting retaliatory levies from Beijing including a 15% duty on US coal, a key steelmaking ingredient.
Other steelmaking ingredients on the DCE surged, with coking coal and coke up 2.98% and 3.92% respectively.
Steel benchmarks on the Shanghai Futures Exchange gained ground.
Rebar rose nearly 0.9%, hot-rolled coil was up 0.76%, wire rod advanced 2.3% and stainless steel ticked up 0.07%.
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