BEIJING- Iron ore futures prices rose for a third straight session on Wednesday, supported by resilient steel demand and persistent hopes of further economic stimulus in top consumer China.
Lingering high portside stocks capped gains, however.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.98 percent higher at 773.5 yuan ($106.82) a metric ton.
Daily transaction volumes of construction steel products in China climbed for a third-consecutive session by 0.67 percent to 135,100 tons on Tuesday, data from consultancy Mysteel showed.
Benchmark December iron ore on the Singapore Exchange was little changed at $101.1 a ton.
Steel consumption typically contracts in November when outdoor construction slows in colder northern regions, but this month it was offset by demand in the warmer south and east.
Steel benchmarks on the Shanghai Futures Exchange recorded gains. Rebar added 0.85 percent, hot-rolled coil rose 0.43 percent, wire rod ticked 0.47 percent higher and stainless steel nudged up 0.19 percent. “The ore price increase was mainly driven by improved macro sentiment with market participants expecting Beijing to roll out further fiscal stimulus in an important meeting in December,” analysts at Galaxy Futures said in a note.
