SINGAPORE- Iron ore futures inched higher on Thursday, buoyed by positive investor sentiment due to a recovering Chinese economy and low inventory data, though lower-than-expected steel output capped gains.
The most-traded January iron ore on China’s Dalian Commodity Exchange rose 0.5 percent to 873 yuan ($119.33) per metric ton as of 0315 GMT, rising for the seventh consecutive session.
On the Singapore Exchange, the benchmark November iron ore was up 0.8 percent at $116.75 a metric ton.
“Iron ore futures are rallying this morning purely in response to robust, upwardly revised Chinese Q3 GDP figures,” said Atilla Widnell, Managing Director at Navigate Commodities.
China’s economy grew at a faster-than-expected clip in the third quarter. Consumption and industrial activity in September also surprised on the upside, suggesting the recent flurry of policy measures is bolstering recovery.
The iron ore market also witnessed a sentiment boost from dwindling inventories, with iron ore stocks hitting a low of 105.2 million tons as of Oct. 13, marking their lowest levels since 2016, according to data from Steelhome a consultancy firm.
