Iron ore futures rose for a third straight session on Thursday, with the Singapore benchmark scaling a fresh six-month peak, underpinned by continued optimism about demand prospects in top steel producer China.
Prospects of stronger demand in China, which has dismantled COVID-19 restrictions and rolled out supportive policies particularly for its ailing property sector, have supported a rally in the ferrous complex since early November.
Iron ore’s most-traded May contract on China’s Dalian Commodity Exchange ended daytime trade 1.4 percent higher at 855.50 yuan ($126.57) a ton.
On the Singapore Exchange, the steelmaking ingredient’s benchmark February contract climbed by up to 1 percent to hit its highest since June at $123.25 a ton.
“Considering that the government’s full support for real estate and the post-epidemic economic recovery will stimulate consumption of iron ore, it is still recommended to call back more iron ore,” Huatai Futures analysts said in a note.
With global recessionary risks increasing, China has pledged measures that will help boost domestic demand and ensure steady and orderly financing to the property sector. – Reuters
