BEIJING- Iron ore futures prices advanced on Friday, aided by growing expectations of improved demand and more stimulus to be unveiled in the coming week in top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.79 percent higher at 894 yuan ($124.23) a metric ton.
The benchmark April iron ore on the Singapore Exchange was 0.89 percent higher at $116.1 a ton.
China’s manufacturing activity in February contracted for a fifth straight month, an official factory survey showed, raising the pressure on policymakers to consider further stimulus measures.
A private-sector survey, however, showed both production and new orders grew faster last month, pushing business confidence to a 10-month high.
Eyes are on China’s annual parliament meeting-the National People’s Congress, which will convene on March 5 with a series of economic targets and policy priorities for this year.
“With no sign that the sector’s (property market) multi-year correction in real estate is close to finding a floor, things will get worse before they get better. We expect announcements of widening support and clear market interventions,” said analysts at Moody’s Analytics in a note, expecting extra stimulus for manufacturing sector.
Boosting market sentiment is also Beijing’s latest effort to support its ailing property area. – Reuters