BEIJING- Dalian iron ore futures rose for a fourth straight session on Thursday, helped by low inventories and pre-holiday restocking, although concerns about lingering steel market weakness in the peak construction season capped the gains.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) climbed 0.47 percent to 860.5 yuan ($118.28) a metric ton.
“Solid demand for raw materials from blast-furnace-based steelmakers, expectations of a wave of pre-holiday restocking, coupled with low inventories, supported (iron ore) prices,” analysts at Sinosteel Futures said in a note.
Iron ore shipments from suppliers have been steadily increasing, but consumption outside of China is expected to recover quickly, which will likely reduce some supply to China, analysts at Galaxy Futures said in a note.
The benchmark October iron ore on the Singapore Exchange eased 0.27 percent to $119.1 a ton, as of 0258 GMT, weighed down by renewed fears that the US Federal Reserve will keep interest rates higher for longer after inflation data.
Analysts at National Australia Bank continue to see downside risks to iron ore prices without further stimulus in China.
