BEIJING- Iron ore futures rose on Wednesday as investors shifted focus to near-term consumption prospects after the conclusion of China’s annual parliament meeting, although lingering fears of a global trade war weighing on the demand outlook curbed gains.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.97 percent higher at 779.5 yuan ($107.78) a metric ton.
The benchmark April iron ore on the Singapore Exchange increased 0.73 percent to $101.5 a ton.
It touched the highest since March 3 at $102.05 a ton earlier in the session.
“Iron ore arrivals last week missed expectations, while hot metal output accelerated its rising pace, leading to a drastic reduction in portside inventories,” analysts at Jinrui Futures said in a note.
Iron ore stocks at major ports slipped 2.5 percent from the prior week and 4.1 percent from the prior month to a nearly one-year low of 141.3 million tons by March 7, data from consultancy Steelhome showed.
“Prices of front month contracts will benefit from the lingering expectation of rising demand in peak construction season in March…but that does not reverse a supply glut of iron ore this year,” Jinrui Futures analysts said.
