Iron ore futures inched higher on Monday, with the Dalian benchmark contract extending gains into a third session on upbeat demand prospects in top steel producer China, although rising supply tempered investors’ optimism.
Chinese stainless steel futures took the spotlight, however, rising as much as 4.2 percent as prices of key ingredient nickel on the London Metal Exchange headed back towards their highest in nearly nine months.
The most-traded January 2021 iron ore on the Dalian Commodity Exchange ended the morning session up 0.6 percent at 836.50 yuan ($120.52) a ton.
The front-month September contract on the Singapore Exchange rose as much as 1.2 percent to $117.25 a ton.
Dalian iron ore is on track for its sixth straight monthly gain while spot prices of the steelmaking ingredient in China hover around a 13-month high, underpinned by Beijing’s stimulus program for the coronavirus-hit economy.