BEIJING- Prices of iron ore futures climbed on Friday to their highest levels in nearly two weeks, and were on track for a weekly gain, supported by resilient demand and rising expectations of additional stimulus measures in top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 2.32 percent higher at the highest level since March 3 at 794 yuan ($109.79) a metric ton, an increase of 2.5 percent week-on-week.
The benchmark April iron ore on the Singapore Exchange was up 1.55 percent at $103.8 a ton, the highest level since February 28.
The contract has gained 3.3 percent so far this week.
China’s central bank said on Thursday that it would cut interest rates and banks’ reserve requirement ratio at the appropriate time and keep liquidity ample, lifting market sentiment.
Prices are also supported by a continued rise in demand for the key steelmaking ingredient, as steelmakers have ramped up production during the peak construction season in March.
Average daily hot metal output, typically used to gauge iron ore demand, climbed for a third straight week by 0.03 percent week-on-week to 2.31 million tons, as of March 13, a survey from consultancy Mysteel showed. The escalating global trade war, which could dampen demand outlook, coupled with China’s plan to cut crude steel output, continued to pose as headwinds, limiting further gains.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 0.69 percent and 0.03 percent, respectively.
Steel benchmarks on the Shanghai Futures Exchange advanced. Rebar added 0.77 percent, hot-rolled coil rose 1.53 percent, wire rod jumped 0.78 percent and stainless steel ticked 0.41 percent higher.
