Iron ore futures firmed on Tuesday, gaining as much as $3 a ton, on expectations that steel usage in China would remain robust in the coming months and offset sluggish demand overseas.
The Dalian Commodity Exchange’s most-traded iron ore for delivery in January 2021 rose as much as 2.5 percent to 855 yuan ($123.35) a ton in early trade, extending gains into a fourth straight session.
Iron ore’s front-month September contract on the Singapore Exchange climbed 1.9 percent to $119.15 a ton, rising for the third session in a row.
“Market participants are looking forward to a strong second half for Chinese steel demand which should maintain steel and iron ore prices above previous expectations,” said Justin Smirk, senior economist at Westpac Economic Research.
