SINGAPORE- Dalian iron ore futures prices climbed on Friday, ending a three-session slide and finishing higher for the week, as investors awaited further fiscal stimulus announcements from top consumer China.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 2.81 percent higher at 769.5 yuan ($108.04) a metric ton, gaining 0.92 percent for the week.
The benchmark November iron ore on the Singapore Exchange rose 1.71 percent to $101.05 a ton, but was down 2.34 percent for the week.
Recent macroeconomic policies have driven a rebound in ferrous metals, helping iron ore prices rise in the short term, Chinese financial information site Hexun Futures said in a note.
Amid Beijing’s policy shift at the end of September, warehouses replenished stocks ahead of the National Day holiday break, restoring steel mills’ profits, said Hexun Futures.
Daily crude steel production at major Chinese steelmakers in mid-October rose 1.1 percent from early October to 2.7 million tons a day, said ANZ analysts.
Still, demand for steel in China, the world’s largest producer and consumer, will likely flatten or dip slightly in 2025, industrial officials said, warning of mounting risks facing steel exports due to growing trade frictions.
A protracted downturn in the property market, typically the largest steel consumer in China, has seen Chinese steelmakers struggling with profitability amid dwindling demand.
