Dalian and Singapore iron ore futures rose to two-week highs on Friday, posting their biggest weekly gains in six weeks, after top steel producer China announced more steps to support its COVID-ravaged economy.
Also aiding sentiment, a lower-than-expected August inflation reading in China sparked hopes for further central bank policy easing.
Most-traded January iron ore on the Dalian Commodity Exchange closed 3.7 percent higher at 720.50 yuan ($103.92) a ton, after touching its strongest since Aug. 29 at 724.50 yuan earlier in the session.
Dalian iron ore rose 7.4 percent this week, ahead of the Sept. 10-12 Mid-Autumn Festival holiday in China.
On the Singapore Exchange, the steelmaking ingredient’s benchmark October contract was up 3.2 percent at $103.25 a ton.
China’s intensified support for an ailing property market supported ferrous commodities, along with “an aggressive push to boost infrastructure spending as Beijing looks to support growth in the face of COVID-19 lockdowns,” ANZ commodity strategists said in a note.
After policymakers signaled a renewed sense of urgency to shore up the economy, China’s cabinet on Thursday announced more steps to spur investment, such as in new infrastructure projects.
