Iron ore resumed its rally in Singapore on Friday, hitting its biggest weekly gain in 11 weeks, underpinned by China’s policy support for its faltering economic recovery and optimism over demand prospects in the near term.
Though little changed on the Dalian Commodity Exchange, the steelmaking ingredient’s Chinese benchmark was also poised to log a similar weekly milestone, ahead of a seasonal pick-up in domestic construction activity from September to October.
“As we enter the seasonally bullish Sept/Oct onshore season we are of the opinion dips will find support,” Al Munro at broker Marex said in a note.
Iron ore’s benchmark September contract on the Singapore Exchange was up 1.5 percent at $113.60 per metric ton, as of 0340 GMT, after Thursday’s 1.2 percent decline that followed a five-session rally. It has gained more than 6 percent this week.
Dalian’s most-traded January iron ore ended morning trade 0.1 percent higher at 823 yuan ($112.93) per ton, after swinging back and forth.
Spot iron ore has also climbed more than 6 percent this week, trading at a four-week high of $116.50 on Thursday, SteelHome consultancy data showed. – Reuters
