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Dalian iron ore climbs 3% to 1-week high
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SGX iron ore's support holds above $120/T
(Updates prices)
By Enrico Dela Cruz
Feb 9 (Reuters) - Iron ore futures rose on Thursday,
with the Dalian benchmark hitting a one-week high after two days
of declines, as sentiment turned upbeat ahead of the release of
Chinese lending data, a key indicator of support for economic
growth.
Higher growth forecasts for top steel producer and iron ore
consumer China also helped lift the mood.
Rating agency Fitch has revised its forecast for China's
economic growth in 2023 to 5.0% from 4.1% previously as
consumption and broader activity are recovering faster than
initially anticipated after the end of the "zero-COVID" regime. The most-traded May iron ore on China's Dalian Commodity
Exchange ended daytime trade 2.6% higher at 863 yuan
($127.19) a tonne. It earlier climbed 3% to 866 yuan, its
highest since Feb. 2.
On the Singapore Exchange, the steelmaking ingredient's
benchmark March contract was up 1.6% at $123.30 a tonne, as of
0739 GMT.
Yuan loans extended by Chinese banks likely hit a record high in January as the central bank moved to shore up growth in the world's second-biggest economy, a Reuters poll showed. Iron ore, which has been propped up by China's policy support for its ailing property sector and dismantling of COVID-19 restrictions, was subdued in recent days as traders re-assessed demand prospects. The January new loan data are expected to be released between Feb. 9 and Feb. 15. "Chinese banks usually book loans at the beginning of the year. Any amount over CNY 4.37 trillion will suggest strong loan demand from corporates that expect a strong recovery in the economy," ING economists said in a note. Other Dalian steelmaking inputs also advanced, with coking coal up 1% and coke rising 1.4%. Steel benchmarks rose, with rebar on the Shanghai Futures Exchange up 1.6%, hot-rolled coil climbing 1.8%, and wire rod adding 0.6%. Stainless steel slipped 0.4%. (Reporting by Enrico Dela Cruz in Manila; editing by Uttaresh.V and Rashmi Aich)
