Iron ore futures in China edged higher in early trade on Monday, underpinned by data showing a drop in stocks of the steelmaking raw material at the country’s ports, and after the central bank cut the interest rate on its medium-term lending.
China’s port inventory of imported iron ore dipped to 130.65 million tons, as of last Friday, from 131.1 million tons a week earlier, SteelHome consultancy data showed. That was 9 percent down from 143.60 million tons a year ago.
The Dalian Commodity Exchange’s most-traded iron ore contract, which expires in May, was up 0.7 percent at 627.50 yuan ($89.97) a ton by 0311 GMT.
Supply concerns have also lifted spot prices of China-bound iron ore, with the benchmark 62 percent grade settling at a three-week-high $88.50 a ton on Friday, SteelHome data showed.
“Iron ore prices, both futures and spot prices, are supported by a decrease in iron ore inventory, signs of supply tightness and the positive outlook,” said Helen Lau, metals and mining analyst at Argonaut Securities in Hong Kong. — Reuters
