BEIJING- Iron ore futures prices extended gains for a second straight session on Tuesday, supported by a softer US dollar and the start of restocking seaborne cargoes among steelmakers in top consumer China to sustain production in January.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.39 percent higher at 763.5 yuan ($105.59) a metric ton.
The benchmark December iron ore on the Singapore Exchange was 0.91 percent higher at $100.05 a ton.
A weaker dollar makes greenback-priced commodities less expensive for buyers holding other currencies.
“Data over the weekend showed that the issuance pace of local government debts has accelerated, indicating more capital available for property projects, boosting the ferrous market,” said Pei Hao, an analyst at international brokerage Freight Investor Services (FIS).
“Moreover, $100 a ton is a key level that traders have been closely monitoring as once prices fall below the level, buying interest for seaborne cargoes picked up even amid high portside stocks.”
Also underpinning prices of the key steelmaking ingredient is some mills kicking off buying seaborne cargoes to meet their production needs over the week-long Chinese New Year holiday break in January, said one Chinese steelmaker and one trader, both requesting anonymity as they are not authorized to speak to media.
