By Enrico Dela Cruz
Feb 21 (Reuters) - Dalian and Singapore iron ore futures
surged past $130 a tonne on Tuesday after the world's largest
listed miner, BHP Group , said it expects a rebound in
the economy of top metals consumer China.
BHP's confidence was buoyed by green shoots since the start
of the calendar year, including new loans, house prices and
business sentiment surveys, Chief Executive Officer Mike Henry
said.
The most-traded May iron ore on China's Dalian Commodity
Exchange rose as much as 3.4% to 918.50 yuan
($133.83) a tonne, the strongest for the Dalian-traded commodity
since July 2021.
On the Singapore Exchange, the steelmaking ingredient's
benchmark March contract surged by more than $11, or
about 9%, to $139.80 a tonne, the highest since April last year.
The upbeat mood also boosted prices of other Dalian
steelmaking inputs as well as steel benchmarks in Shanghai.
"Fragile shoots of an emerging Chinese steel demand recovery
appear to be slowly developing strong roots, as bullish
high-frequency data extended into a second consecutive week,"
Navigate Commodities Managing Director Atilla Widnell said in a
note.
"If this trend extends for a third consecutive week – and
there's little to suggest otherwise – this should continue to
reinforce the renewed optimism around China's reopening
narrative."
Rebar and wire rod on the Shanghai Futures
Exchange both climbed 1.6%, hot-rolled coil gained 1.1% and stainless steel added 1.5%.
Coking coal coke rose 3.2% and 1.9%,
respectively.
Iron ore broke past the $120-$130 trading range it had been
confined to for weeks, with traders brushing aside a fresh
reminder from regulators about the need to ensure stable market
operations, and rising portside stockpiles.
"Higher iron ore prices will go hand-in-hand with more
active and vocal rhetoric from Chinese authorities pontificating
their displeasure at elevated levels," Widnell said.
Imported iron ore stocked at Chinese ports hit a fresh
five-month high on Friday, SteelHome consultancy data showed. (Reporting by Enrico Dela Cruz in Manila
Editing by Vinay Dwivedi)
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