BEIJING- Iron ore futures extended gains on Wednesday, aided by China’s better-than-expected credit data, but fears of escalating trade tensions ahead of US President-elect Donald Trump taking office next week capped the rise.
Trump has pledged to impose a 60 percent tariff on Chinese goods.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.71 percent higher at 782.5 yuan ($106.73) a metric ton, after hitting the highest since Jan. 2 at 787.5 yuan a ton earlier in the session.
The benchmark February iron ore on the Singapore Exchange rose 0.31 percent to $100.65 a ton after touching the highest since Jan. 2 of $101.15 earlier in the day.
Chinese banks extended 990 billion yuan ($135.03 billion) in new loans last month, up from November 2024, outpacing analysts’ forecasts and boosting sentiment in the ferrous market.
Prices of the key steelmaking ingredient have gained around 4 percent so far this week on rising stimulus bets and strong steel trade data.
“The market also remains hopeful of further stimulus measure after recent comments from Vice Finance Minister Liao Min that China has sufficient fiscal firepower to respond to external challenges,” ANZ analysts said.
