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Dalian iron ore hits highest in over 2 weeks
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SGX iron ore rises for third straight session
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China's new home prices rise in January
(Updates prices)
By Enrico Dela Cruz
Feb 16 (Reuters) - Benchmark iron ore futures rose on
Thursday as top steel producer China reiterated its resolve to
support economic growth by stimulating consumer spending, though
gains were capped while traders continued assessing demand
prospects.
The most-traded May iron ore on China's Dalian Commodity
Exchange ended daytime trade 1.8% higher at 880 yuan
($128.43) a tonne, after earlier hitting its highest since Jan.
30 at 883 yuan.
On the Singapore Exchange, the steelmaking ingredient's
benchmark March contract was up 1.3% at $124.90 a
tonne, as of 0827 GMT, rising for a third day.
Chinese authorities said on Thursday they will craft
policies aimed at stimulating spending on housing and unlocking
consumer savings that have built up during the pandemic.
Also lending support to ferrous futures prices, China's new
home prices rose in January for the first time in a year, as the
end of the zero-COVID regime, favourable property policies and
market expectations for more stimulus measures boosted demand.
On the Dalian exchange, coking coal rose 2.2% and
coke climbed 2.4%.
Steel benchmarks on the Shanghai Futures Exchange were also
firmer, with rebar gaining 2.1%, hot-rolled coil rising 1.6%, and wire rod advancing 0.3%.
Stainless steel slipped 0.3%.
Although firmer, iron ore remained range-bound this week as
the expected rebound in Chinese demand for steel has been slow,
while analysts maintained a subdued outlook for the Chinese
property market.
A sluggish domestic steel demand and elevated costs of
steelmaking ingredients have squeezed mills' profitability.
"Overall iron ore prices have been suppressed by weak
profits and a weak recovery in end demand," Sinosteel Futures
analysts said in a note, adding that trading was largely "still
in the demand verification period".
Adding to the cautiousness, iron ore portside inventory in
China hit a five-month high last week, SteelHome consultancy
data showed. (Reporting by Enrico Dela Cruz in Manila; editing by Uttaresh.V
and Rashmi Aich)
