Chinese ferrous futures rose for a second straight session on Thursday, with benchmark Dalian iron ore advancing by more than 5 percent on renewed hopes for additional stimulus to help the world’s second-biggest economy offset the impact of COVID-19 resurgence.
Mainland China’s new local symptomatic cases declined for a second consecutive day, adding to the positive sentiment following Wednesday’s remarks by Chinese Vice Premiere Liu He indicating plans to take measures to boost the domestic economy.
Worries also eased about the impact of the Russia-Ukraine conflict on trade between top steel producer China and the European Union, amid hopes for a potential breakthrough in compromise talks between Moscow and Kyiv.
The most-traded iron ore, for May delivery, on China’s Dalian Commodity Exchange rose as much as 5.6 percent to 817 yuan ($128.72) a ton.
On the Singapore Exchange, the most-active April iron ore contract was up 0.3 percent at $149.75 a ton.
“China signaled support for financial markets and growth, while Russia suggested a neutral, but still armed, Ukraine could be a compromise,” said Taylor Nugent, economist at National Australia Bank, as stocks and metals markets rallied.
Construction steel rebar on the Shanghai Futures Exchange was up 1.9 percent, while hot-rolled coil climbed 1.7 percent. But stainless steel retreated, down 1.1 percent as a price rally for raw material nickel cooled. – Reuters
