Iron ore prices scaled multi-week highs on Tuesday, with benchmark futures in Dalian and Singapore rising for a fourth straight session, underpinned by hopes of improved demand for the steelmaking ingredient in top steel producer China.
The most-traded iron ore for May delivery on China’s Dalian Commodity Exchange rose as much as 2.7 percent to 703 yuan ($110.28) a ton, its highest level since Oct. 28.
Iron ore’s February contract on the Singapore Exchange climbed 4.1 percent to $129.65 a ton.
In China’s spot market, the benchmark 62 percent-grade iron ore traded at $125 a ton on Monday, steadily advancing since Dec. 15 to hit the highest level since Oct. 13, SteelHome consultancy data showed.
“Once again, the direction, momentum and quantum of iron ore prices is largely being dictated by sentiment given that very little has changed from a global supply-demand balance,” said Atilla Widnell, managing director at Navitage Commodities in Singapore.
