Iron ore futures on the Dalian and Singapore exchanges rose to two-week highs on Friday, posting their biggest weekly gains in six weeks after China, the world’s biggest steelmaker, announced further measures. to support its economy devastated by Covid-19.
Also contributing to sentiment, lower-than-expected August inflation in China raised hopes of further central bank policy easing.
January’s most-traded iron ore on the Dalian Commodity Exchange closed up 3.7% at 720.50 yuan ($103.92) a tonne, after hitting its highest since Aug. 50 yuan at the beginning of the session.
For the week, the Dalian contract was up 7.4% ahead of the September 10-12 holiday in China.
On the Singapore Stock Exchange, the benchmark steel ingredient contract for October rose 3.2% to $103.25 a tonne.
China’s intensified support for a struggling housing market has bolstered ferrous commodities, along with “an aggressive push to increase infrastructure spending as Beijing seeks to support growth in the face of Covid-19 lockdowns,” commodity strategists said. from ANZ in note.
After policymakers signaled a renewed sense of urgency to strengthen the economy, China’s cabinet last Thursday announced more measures to stimulate investment, such as in new infrastructure projects.
In the spot market, the increase in demand caused iron ore with a 62% grade of reference to China to rise this week, reaching US$ 103.50 a ton on Friday, data from consulting firm SteelHome showed.
Source: CNN Brasil
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