Iron ore futures advanced, driven by optimism about demand prospects as signs emerged that top steel producer China is moving to support its faltering economy.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended daytime trading at 812 yuan ($114.03) per metric ton, up 3.4 percent, just below the session-high of 812.50 yuan, which was its strongest since April 3. It has risen more than 7 percent this week.
On the Singapore Exchange, the steelmaking ingredient’s benchmark July contract was up 2 percent at $112.45 per metric ton, as of 0800 GMT, taking its weekly gain to more than 8 percent. It earlier climbed to $112.65, its highest since April 20.
“Iron ore continues to defy gravity. Traders are betting on a wider, more substantial stimulus package to come,” analysts at brokerage SP Angel said in a note.
China’s state-backed banks on Thursday lowered the rates on yuan deposits in actions that could ease pressure on profit margins and reduce lending costs, providing some relief for the financial sector and wider economy. – Reuters
