Iron ore up on upbeat demand outlook

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    Iron ore futures extended gains on Tuesday as concerns over tight market liquidity in China eased, with prices further bolstered by a positive demand outlook for the steelmaking ingredient in the world’s top steel producer.

    The most-traded May iron ore on China’s Dalian Commodity Exchange jumped as much as 3.8 percent to 1,057 yuan ($163.90) a ton, rising for a fourth straight session to its strongest level since Jan. 26.

    March iron ore on the Singapore Exchange climbed 2.7 percent to $158.70 a ton, its highest level since Jan. 27 and up for a second day.

    “It appears to me the sharp drawdown in price in late January was due to liquidity concerns in China, where the 7-day interbank repo rate rose above 3 percent for four sessions,” said Howie Lee, an economist at OCBC Bank in Singapore.