BEIJING- Iron ore futures extended its rally to a more than three-month peak on Wednesday, fueled by a bullish demand outlook buoyed by China’s recent support on its property sector.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 2.4 percent to 918 yuan ($126.83) a metric, its highest since Feb. 20.
The contract has gained for five consecutive sessions.
The benchmark June iron ore on the Singapore Exchange rose 0.9 percent to $121.9 a ton.
China last Friday announced “historic” steps to stabilize its crisis-hit property sector, with the central bank facilitating 1 trillion yuan ($138 billion) in extra funding and easing mortgage rules, among others.
The property sector is a major consumption pillar for steel and has therefore raised investors’ prospect for steelmaking ingredients.
Other steelmaking ingredients on the DCE climbed, with coking coal advancing 3.7 percent and coke up 3.6 percent.
Steel benchmarks on the Shanghai Futures Exchange were mostly up. Rebar rose 1.5 percent, hot-rolled coil added 1.2 percent, wire rod up 1.1 percent, while stainless steel eased 0.2 percent.
