Iron ore futures rebounded from two-week lows on Thursday, bolstered by rising steel output in top producer China and expectations of higher demand for the steelmaking ingredient ahead of the country’s Golden Week holiday.
The most-traded January iron ore on China’s Dalian Commodity Exchange rose as much as 3.2 percent to 717.50 yuan ($101.17) a ton.
On the Singapore Exchange, the benchmark October iron ore contract climbed as much as 9.2 percent to $104.50 a ton. It was up 2.2 percent at $97.75 a ton.
China’s daily crude steel output recovered further in the middle ten days of September, with the volume increasing to a three-month high of 2.89 million tons on average, according to industry data provider Mysteel. Average daily crude steel output over the period was up 25,900 tons, or 0.9 percent, from the prior 10 days.
Mysteel attributed the rise in output in mid-September mainly to some blast furnace steelmakers resuming operations or steadily ramping up production after the previous production cutbacks.
Analysts said traders and steel mills were expected to replenish their iron ore stocks ahead of the Golden Week holiday beginning Oct. 1.
Steel prices also rebounded from recent declines. – Reuters
