(Updates with closing prices)
By Matthew Chye
Feb 20 (Reuters) - Dalian iron ore futures rose on
Monday, extending gains to a fourth consecutive session, as
hopes of stronger demand in top steelmaker China supported
market sentiment.
The most-traded May iron ore on China's Dalian Commodity
Exchange ended day-time trade 1.0% higher to 894.0
yuan ($130.35), after hitting a contract high of 898.5 yuan
earlier in the session.
On the Singapore Exchange, the benchmark March iron ore was up 0.2% at $125.80 a tonne, as of 0715 GMT.
The most-active rebar contract on the Shanghai Futures
Exchange edged up 0.5%, hot-rolled coil gained 0.5%, while wire rod fell 0.3%, and stainless
steel gave up 0.1%.
Signs of stabilisation in the property market helped lift
iron ore futures, after China’s home prices held steady in
January, following declines for the past 16 months, ANZ Research
said in a note.
China's new home prices rose in January for the first time
in a year, official data showed last week, as the end of the
zero-COVID regime, favourable property policies and market
expectations for more stimulus measures boosted demand.
Investors are optimistic that the Chinese government will
announce further economic stimulus measures at the upcoming
National People's Congress session in early March.
Currently, with the supply of iron ore relatively tight and
as demand for the replenishment of inventories gradually rises
due to the resumption of steel mill production in top steelmaker
China, ore prices are expected to continue rising, Huatai
Futures said in a research note.
Asian shares edged up on Monday as a U.S. holiday made for
slow trading ahead of minutes of the latest Federal Reserve
meeting and a reading on core inflation that could add to the
risk of interest rates heading higher for longer. Dalian coking coal and coke rose 2.2% and
1.7% respectively.
($1 = 6.8584 yuan)
(Reporting by Matthew Chye; Editing by Nivedita Bhattacharjee)
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