SINGAPORE- Dalian iron ore futures rose on Wednesday, buoyed by persistently strong demand, and as concerns over China’s supervision of the markets to ensure price stability began to fade.
The most-traded January iron ore on China’s Dalian Commodity Exchange rose 1.3 percent to 974 yuan ($136.14) per metric ton.
On the Singapore Exchange, the benchmark January iron ore was up 1.3 percent at $129.05 a metric ton.
State-backed Dalian Exchange announced on Nov. 30 its commitment to enhance supervision of the iron ore market for safe and stable market operation. This came after the announcement on Nov. 24 that China will reinforce oversight and curb a price rally.
Initially effective at price control, market supervision is now waning in influence, with analysts noting diminishing impact as market participants increasingly overlook its significance.
Confidence has been creeping back into the market amid efforts to boost the property sector in China.
There have been some signs of improvement, with China’s new home prices rising slightly in November for a third monthly gain.
