BEIJING- Iron ore futures extended their rise for a third session on Wednesday, aided by lingering optimism from further support to the property market in top consumer China, although a weakening steel market and mounting risk-off sentiment capped gains.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) ticked up 0.46 percent to 983 yuan ($136.32) a metric ton, following a rise of nearly 2 percent a day before.
The benchmark December iron ore on the Singapore Exchange was 0.25 percent higher at $133.6 a ton, after touching an intra-day high of $134.3 a ton, which is also the highest since February.
Chinese regulators are drafting a list of 50 real estate developers eligible for funding, Bloomberg News reported on Monday, citing people familiar with the matter.
“This could help steel demand from the construction sector to stabilize, although a seasonal decline in construction activity will act as a constraint to steel demand,” analysts at ANZ Bank said in a note.
Analysts warned of possible risks of a downswing in iron ore prices as authorities may intensify supervision following the recent price rally. – Reuters
