Iron ore futures rose more than 3% on Friday (13), with prices on the Dalian exchange hitting a 17-month high and extending gains for the week on continued optimism about demand prospects in the largest steel producer in the world, China.
After bottoming out in October, iron ore prices changed course, being one of the biggest gainers in the commodity complex with China’s sudden shift from its “zero-Covid” strategy and political support for its real estate sector in difficulties.
Global supply concerns are also driving iron ore prices, with analysts citing weather-related disruptions in Brazil and possible cyclones in Australia — the world’s biggest exporters of the steelmaking raw material — and mine maintenance programs in the first quarter. .
The most-traded iron ore contract on the Dalian exchange ended daytime trade up 3.4% at 881 yuan ($130.96) a tonne after reaching its highest level since August 2021 at 883 yuan ($130.96) a tonne. yuan.
On the Singapore exchange, the reference iron ore operated at a low, at US$ 121.95 a ton, around 11:40 am (Brasília time), after advancing up to 3.5%, to 126.40 a ton, the highest level since last June.
Although China faces challenges in the first quarter due to high rates of Covid-19 infection, “growth prospects will improve from the second quarter, helped by the recovery of domestic consumption, further stabilization in the real estate market and supportive monetary and fiscal measures. ”, UOB Bank said in a note.
Source: CNN Brasil
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