Dalian iron ore rallied for a fifth consecutive session on Wednesday and was set for a weekly gain of more than 6 percent, buoyed by hopes of improved demand for the steelmaking ingredient after the Lunar New Year holiday in China.
Top steel producer China, home to world’s most liquid iron ore futures market, heads for a week-long holiday beginning on Thursday.
Most-traded May iron ore on China’s Dalian Commodity Exchange rose 1.4 percent to 1,061 yuan ($164.82) a ton.
Most-active March iron ore on the Singapore Exchange climbed 0.4 percent to $159.20 a ton.
Although physical and derivatives traders are heading out of the market ahead of the holiday, the SGX benchmark was also on track for a weekly gain of more than 5 percent, with a positive outlook for steel industries outside China also providing a boost.
Spot iron ore bound for China traded at $161 a ton on Tuesday, its highest since Jan. 27, according to SteelHome consultancy. – Reuters