BEIJING- Iron ore futures prices rebounded on Monday, supported by a softer US dollar and the prospect of steel demand picking up in the coming peak construction season in top consumer China.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 2 percent higher at 740 yuan ($103.91) a metric ton.
The benchmark September iron ore on the Singapore Exchange climbed 3.2 percent to $99.15 a ton.
The dollar hovered near an eight-month low, after US Federal Reserve Chair Jerome Powell’s dovish remarks on Friday reinforced expectations of an interest rate cut in September.
A weaker dollar makes dollar-priced commodities less expensive for buyers using other currencies.
“The prospect of easing monetary policy boosted sentiment across the commodity complex,” ANZ analysts said in a note.
A marginal improvement in fundamentals also supported prices of the key steelmaking ingredients, although more equipment maintenance conducted among Chinese steelmakers after losses widened remained a headwind, said analysts.
Supply-side pressure eased a bit with lower domestic output amid falling ore prices while expectations of improved downstream steel demand in the coming month beefed up, analysts at Sinosteel Futures said in a note.
