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Dalian iron ore sets contract high near 900 yuan/T
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Spot iron ore trades near $130/T, highest since June
(Updates prices)
By Enrico Dela Cruz
Jan 30 (Reuters) - Dalian iron ore futures extended
gains after a week-long Lunar New year holiday in China,
climbing more than 3% to a contract high on Monday, on optimism
around demand prospects for the world's top steel producer.
The most-traded May iron ore contract on China's Dalian
Commodity Exchange ended daytime trade 2% higher at
873.50 yuan ($129.40) a tonne, after earlier hitting a
contract-high 890 yuan.
On the Singapore Exchange, the steelmaking ingredient's
benchmark March contract was up 1.1% at $127.80 a
tonne, as of 0714 GMT, easing from a session-high of $130.55.
"We will need to wait and see if the reopening rally
maintains the verve with which it entered the holiday period or
whether this optimism is now running on fumes," said Navigate
Commodities Managing Director Atilla Widnell.
Overall market sentiment was positive, as traders cheered
data showing Lunar New Year holiday trips inside China surged
74% from last year after authorities scrapped COVID-19 travel
curbs.
Adding to upbeat mood, the central bank said on Sunday it
would roll over three lending tools to increase support for
targeted sectors of the economy.
Rebar and hot-rolled coil on the Shanghai
Futures Exchange both rose 0.6%, while wire rod climbed
1.3%. Stainless steel slipped 0.1%.
Dalian coking coal dipped 1.4%, while coke gained 0.4%.
In the spot market, benchmark 62%-grade iron ore was trading
at $128.50 a tonne, the highest since June, based on SteelHome
consultancy data .
Australia's Fortescue Metals Group said on Friday it was expecting a solid economic rebound in top iron ore buyer China.
But worries about regulatory intervention as China has warned against price speculation may curb gains. China "will become more vigorous and vocal in its narrative on what it considers to be overvalued iron ore prices - if they continue to rise," Widnell said. (Reporting by Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips and Rashmi Aich)
