Home / Commodities / Commodity News / Iron ore rises on China COVID rules easing, property support

Iron ore rises on China COVID rules easing, property support

Iron ore futures edged higher on Tuesday, as China’s moves to ease some COVID-19 curbs and support the struggling property sector sparked hopes of a demand recovery.

Ferrous metals on the Shanghai Futures Exchange and other steelmaking inputs on the Dalian Commodity Exchange also advanced, even after data showed on Tuesday that real estate investment in top steel producer China fell at the fastest pace in 32 months in October.

Other indicators also pointed to the world’s second-largest economy still grappling with COVID-19 curbs and a property sector downturn.

But while the downtrend continues, China’s property market has shown some positive changes, a National Bureau of Statistics spokesman said.

The most-traded Dalian iron ore, for January delivery DCIOcv1, ended daytime trade 0.1% higher at 719 yuan ($102.08) a tonne. Earlier in the session, it rose to 727 yuan, not far from Monday’s five-week high of 735.50 yuan.

On the Singapore Exchange, the steelmaking ingredient’s benchmark December contract SZZFZ2 was up 1.5% at $94.90 a tonne, as of 0703 GMT.

After a rout in October amid worries about demand prospects, Dalian iron ore has rebounded this month by 17%, but is off 18% from this year’s peak seen in June.

“The pessimism in the market has eased,” Huatai Futures analysts said in a note, after China vowed to keep fine-tuning its COVID-19 containment approach following the easing of some rules, and regulators outlined 16 steps to support property developers.

Rebar on the Shanghai exchange SRBcv1 rose 0.9%, hot-rolled coil SHHCcv1 gained 1%, wire rod SWRcv1 climbed 1.6%, and stainless steel SHSScv1 added 0.3%.

China’s October steel output fell 8.3% from the previous month as COVID-19 curbs and a property slump hit demand.

Dalian coking coal DJMcv1 and Dalian coke DCJcv1 advanced 1% and 1.4%, respectively.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping