BEIJING- China’s iron ore futures jumped nearly 6 percent on Monday to hit a two-week high, fuelled by firm short-term demand after Beijing vowed to provide more support for the country’s economy.
China’s cabinet, the State Council, on Saturday pledged to beef up investment in infrastructure projects and regional development to support the economy.
The most-traded iron ore contract on the Dalian Commodity Exchange, for January 2020 delivery, rose as much as 5.8 percent to 629 yuan ($88.68) a ton in early trade, extending gains into a third session.
But iron ore prices are still expected to fall in the long run as they are at relatively high levels and supply is recovering, said Wu Shiping, an analyst from Tianfeng Futures.
“The recent rebound in iron ore is a short-term pick-up, partly due to steel mills’ temporarily increasing demand for raw materials,” he said. – Reuters
