Iron ore futures rose on Thursday, with the Dalian benchmark contract touching a two-week high, underpinned by increased construction activity in top steel producer China and sustained policy support for the sector.
Iron ore also remained supported by restocking demand ahead of China’s Golden Week holiday beginning Oct. 1, analysts said.
Rebar prices held firm near a four-week high.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended morning trade 1.5 percent higher at 728 yuan ($101.30) a ton, after hitting a Sept. 15 high of 731 yuan earlier.
On the Singapore Exchange, the steelmaking ingredient’s most-active October contract was up 2.6 percent at $97.30 a ton by 0356 GMT.
Steel inventories in China have fallen, reflecting improving domestic demand, though it also indicated reduced output, ANZ commodity strategists said in a note.
China has distributed an additional 300 billion yuan ($42 billion) allocated for infrastructure projects through three state policy banks as of Wednesday, the official Securities Times reported.
The increased funding is among measures rolled out to shore up a domestic economy that has been hit hard by COVID-19 restrictions and property-sector troubles. – Reuters
