BEIJING- Prices of iron ore futures rose on Monday as near-term demand remained firm and the latest rate cut in top consumer China lifted sentiment, but gains were capped by a lingering caution on exactly how much boost the steel market will have.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 1.52 percent higher at 770 yuan ($108.40) a metric ton.
The benchmark November iron ore on the Singapore Exchange climbed 0.95 percent to $102.65 a ton.
Near-term demand for the key steelmaking raw material held firm thanks to improved steel margins, said analysts.
The daily average hot metal output among steelmakers surveyed gained for a seventh straight week, rising 0.5 percent on the week to 2.34 million tons as of Oct. 18, the highest since early August, while profitability climbed for the eighth consecutive week to 74.46 percent, data from consultancy Mysteel showed.
Meanwhile, China cut benchmark lending rates at the monthly fixing on Monday, boosting the market, after trimming other policy rates last month as part of a package of stimulus measures to revive the economy.
