Iron ore prices rose on Wednesday, underpinned by expectations of resilient near-term steel demand in China, although gains were capped amid concerns about a slowdown in the world’s second largest economy and likely steel output controls.
The benchmark October iron ore on the Singapore Exchange was up 0.7 percent at $115.75 per metric ton. It hit a five-month peak of $117.25 on Tuesday, buoyed by China’s policy measures to revive its faltering growth and struggling property sector.
The steelmaking ingredient’s most-traded January contract on China’s Dalian Commodity Exchange ended daytime trade
0.1 percent higher at 853.50 yuan ($116.80) per ton.
“Current demand for iron ore remains high, and overall macro expectations are relatively optimistic,” Sinosteel Futures analysts said in a note.
Spot prices of iron ore bound for China have also risen further this week, with the benchmark 62 percent -grade material climbing to $119 per ton on Tuesday, the highest since mid-April, SteelHome consultancy data showed.
“Steel demand is expected to trend up in September, based on seasonal demand recovery,” industry consultancy and data provider Mysteel said in its weekly outlook. – Reuters
