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Iron ore hits more than one-week high up on restored hopes of China stimulus

Iron ore futures rallied to their highest in more than a week on Monday, as revived hopes of more stimulus from top customer China increased sentiment.

The most-traded May iron ore contract on China's Dalian Product Exchange (DCE) surrendered some earlier gains to end daytime trade 1.92% greater at 768.5 yuan ($ 104.82). a metric heap.

It hit the greatest level given that Jan. 3 at 772.5 yuan a ton. earlier in the session.

The benchmark February iron ore on the Singapore. Exchange gained 1.75% to $98.85 a heap as of 0700 GMT after. touching $100.25, the greatest because Jan. 3, earlier in the day.

China's central bank chief on Monday said the government. will support moderately loose monetary policy to maintain ample. liquidity, lifting broad financier belief.

This came after Reuters reported last Friday that China's. reserve bank will likely release its most aggressive monetary. strategies in a decade this year in an attempt to stimulate the. economy and soften the blow of impending U.S. tariff walkings.

Pei Hao, a senior analyst at global brokerage Freight. Financier Provider (FIS), ascribed the ore price increase to the. resonance of products brought on by the oil rate rally after the. most current sanctions on Russian oil.

In the medium term, both the advantage and disadvantage space for. ore rates will be limited given that consumers have actually locked. rates and demand.

Rates of steel and steelmaking components posted losses so. far this month, as demand seasonally slowed and as steelmakers. and steel customers have nearly completed replenishment for. steelmaking feedstocks and steel items to satisfy production. needs during and after the Chinese New Year vacations, experts. said.

The Chinese New Year starts from Jan. 28.

China's iron ore imports in 2024 rose to a record high for a. 2nd year, as lower costs spurred buying while demand. stayed resistant due in large part to massive steel exports. that are irritating trade tensions.

Other steelmaking components on the DCE acquired, with coking. coal and coke up 2.61% and 2.28%,. respectively.

Steel criteria on the Shanghai Futures Exchange advanced. Rebar added 1.44%, hot-rolled coil rose. 1.45%, wire rod climbed 1.14% and stainless-steel. ticked up 0.8%.

(source: Reuters)