Iron ore climbed to its highest in more than five months on Tuesday, underpinned by resilient demand in top consumer China and broad-based gains in stock markets.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) gained 0.69% to 801 yuan ($114.77) a metric ton. Earlier in the session, the market climbed to its highest since late July at 806 yuan per ton.
The benchmark February iron ore on the Singapore Exchange firmed 0.74% to $106.55 a ton as of 08:19 GMT.
Iron ore futures ended 2025 on a positive note as demand in China remained strong, with steelmakers restocking ahead of the Lunar New Year holiday in February.
Overall, Chinese blast furnace steel mills and electric arc furnaces increased 0.32% and 1.93%, respectively, in capacity utilization from December 26-31, pointing to increased demand for the feedstock.
Meanwhile, Chinese stocks climbed on Tuesday to their highest levels in more than a decade, buoyed by non-ferrous metals and financials, as investor sentiment remained upbeat ahead of the Lunar New Year holiday. Hong Kong shares also climbed.
Other steelmaking ingredients on the DCE fell, with coking coal and coke down 0.1% and 0.72%, respectively.
Steel benchmarks rebar fell 0.1%. Meanwhile, hot-rolled coil gained 0.18%, wire rod advanced 0.67% and stainless steel firmed 1.82%.
($1 = 6.9794 yuan)
(By Ruth Chai; Editing by Sumana Nandy and Harikrishnan Nair)
