BEIJING – Dalian and Singapore iron ore futures climbed to one-week highs on Tuesday, as China’s better-than expected economic growth in the March quarter boosted investor sentiment.
China’s gross domestic product grew 4.5 percent year-on-year in the first three months of the year, data from the National Bureau of Statistics showed, faster than the previous quarter’s 2.9 percent growth and beating analyst forecasts for a 4.0 percent expansion.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) was up 2.08 percent at a one-week high of 784 yuan ($114.04) a ton.
On the Singapore Exchange, the benchmark May iron ore was up 0.88 percent at $117.8 a ton, as of 0326 GMT, the highest since April 12.
“Solid demand provided certain support to iron ore prices, but there are downside risks stemming from thin steel margins. Also, daily hot metal output may fall after having hit a peak in March,” analysts at Sinosteel Futures said in a morning note.
Weather, which affects the pace of shipments, will not have a much effect on the overall supply, they added. – Reuters
