SHANGHAI- Benchmark iron ore futures on China’s Dalian Commodity Exchange jumped nearly 4 percent on Monday, on course for a sixth straight monthly gain, on expectations that demand for steel will remain strong as construction booms.
The most-traded futures contract for iron ore, a key steel-making ingredient, for January delivery was up 3.8 percent at 853.5 yuan ($124.68) as on Monday. Iron ore is also up 10.4 percent for the month so far.
Spot prices of iron ore with 62 percent iron content for delivery to China rose to a one-week high of $124 per ton on Friday, SteelHome consultancy data showed.
“Iron ore gained as strong demand in China continues to drive shortage concerns, particularly for mid-grade fines,” Vivek Dhar, analyst at Commonwealth Bank of Australia, said in a note.
Dhar added that China’s iron ore imports from Australia and Brazil rose in July, “consistent with the narrative the supply disruptions from earlier this year are dissipating.”