Iron ore futures rose on Friday (2) and posted weekly gains, boosted by expectations that China, the world’s top steel producer, would relax its strict restrictions against Covid-19, raising the mood for demand.
The most traded iron ore for January on China’s Dalian Commodity Exchange ended day trading up 2.2% at RMB 787.5 a tonne, up about 5.2% on the week.
On the Singapore Exchange, the reference iron ore for December rose 2.7%, at US$ 105.75 a tonne.
Some communities in Chinese cities where Covid-19 is still spreading have eased testing requirements and quarantine rules ahead of an expected shift in virus policies across the country following widespread social unrest.
Meanwhile, China reported a slight drop in new daily cases of Covid-19 on Dec. 1, the National Health Commission said.
Market sentiment was also boosted by China’s measures to support its struggling local real estate sector.
These measures have a better chance of turning into stronger demand for steel and iron ore amid a shift from strict adherence to the zero Covid policy, ANZ said in a note.
Source: CNN Brasil
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