Dalian iron ore rises on China’s reassurances on growth
China’s iron ore futures rose on Thursday along with steel prices, as investors regained confidence after senior Chinese officials gave assurances about the economic outlook for 2019.
China’s Vice-President Wang Qishan said on Wednesday at the World Economic Forum in Davos that China’s economy can maintain sustainable rates of growth despite global uncertainties.
The speech came only days after the world’s second-largest economy posted its weakest expansion in nearly three decades, stirring concerns among investors over economic situation in the new year.
The most-traded iron ore futures on the Dalian Commodity Exchange closed up 1.6 percent at 535.50 yuan ($78.90) a tonne, buoyed by some restocking demand at steel mills ahead of the Lunar New Year holiday next month.
However, analysts said trade was already winding down.
“The market has gradually entered holiday season … there is not much tension expected at the moment as investors are waiting for a clearer situation after the holiday,” said analysts from CITIC Futures in a note.
China will celebrate its Spring Festival from Feb. 4 to Feb. 10. Factory workers typically have a longer holiday.
Benchmark Shanghai rebar and hot-rolled coil prices both closed up 1 percent at 3,680 yuan a tonne and 3,590 yuan a tonne, respectively.
Coking coal ended down 0.5 percent to 1,216 yuan a tonne, while coke was flat at 2,034.50 yuan a tonne.
Source: Reuters (Reporting by Muyu Xu and Tom Daly; Editing by Richard Pullin and Sherry Jacob-Phillips)