Iron ore futures edged up on Wednesday after trading in a tight range, as signs of economic stabilization in China helped offset worries over the struggling property sector in the world’s top steel producer.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended morning trade 0.4 percent higher at 873 yuan ($119.63) per metric ton.
On the Singapore Exchange, the benchmark October iron ore was up 1.2 percent at $121.65 per ton, following two straight sessions of losses.
The iron ore market was consolidating gains amid an improved outlook for China, ANZ commodity strategists said in a note.
The steelmaking ingredient’s reference price in Singapore has so far risen more than 5 percent this month and remained firm above $120 per ton, buoyed by China’s economic stimulus efforts.
Also helping lift the overall mood, latest indicators showed the world’s second-largest economy was finding its footing after a sharp slowdown – seen as a key reason why China’s central bank kept benchmark lending rates unchanged at a monthly fixing on Wednesday. – Reuters
