BEIJING- Iron ore futures prices were rangebound on Friday but posted a second weekly gain on the back of lingering hopes of growing demand in top consumer China thanks to a flurry of property stimulus.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.44 percent lower at 908 yuan ($125.33) a metric ton, posting an increase of 2.6 percent week-on-week.
The benchmark June iron ore on the Singapore Exchange was 1 percent higher at $120.75 a ton, a rise of 2.9 percent so far this week.
“The overall sentiment remained positive underpinned by the latest property stimulus policies,” analysts at Huatai Futures said in a note.
China announced “historic” steps last Friday to stabilize its crisis-hit property sector, aiming to clear inventory and boost homebuyer demand, with several cities lowering downpayment and mortgage loan interest rates as a response.
Also, cash-strapped major property developer China said on Thursday it had received a 20 billion yuan syndicated loan facility.
Prices of the key steelmaking ingredient felt downward pressure in the prior day and were moving within a tight range on Friday as investors and traders were reassessing the near-term demand prospects after the latest hot metal output missed expectations while portside stocks continued to pile up.
