HANOI- Iron ore futures rose to their highest levels in three months on Monday, as traders welcomed China’s latest support measures for its crisis-hit real estate sector that accounts for a large volume of iron ore.
The most-traded September iron ore on China’s Dalian Commodity Exchange (DCE) traded 1.6 percent higher at 899 yuan ($124.33) per metric ton at the midday break.
Earlier in the session, the contract rose as much as 2.4 percent to 906 yuan, the highest since Feb. 20.
China announced “historic” steps on Friday to stabilize its property sector, with the central bank facilitating 1 trillion yuan in extra funding and easing mortgage rules, and local governments set to buy “some” apartments.
Iron ore and steel are heavily used in the construction sector and China is the world’s biggest consumer of the commodities.
The benchmark June iron ore on the Singapore Exchange was 1.8 percent higher at $119.45 a ton.
Gains in other metals such as copper and gold, both climbed to record highs on Monday, also boosted trading sentiment in the ferrous complex, said a trader.
“Ferrous opened strong today due to pulling effect from other metals, and also very positive real estate support announced last Thursday and Friday,” the trader said.
