Dalian iron ore futures extended gains after a week-long Lunar New year holiday in China, climbing more than 3 percent to a contract high on Monday, on optimism around demand prospects for the world’s top steel producer.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange ended daytime trade 2 percent higher at 873.50 yuan ($129.40) a ton, after earlier hitting a contract-high 890 yuan.
On the Singapore Exchange, the steelmaking ingredient’s benchmark March contract was up 1.1 percent at $127.80 a ton, easing from a session-high of $130.55.
“We will need to wait and see if the reopening rally maintains the verve with which it entered the holiday period or whether this optimism is now running on fumes,” said Navigate Commodities Managing Director Atilla Widnell.
Overall market sentiment was positive, as traders cheered data showing Lunar New Year holiday trips inside China surged 74 percent from last year after authorities scrapped COVID-19 travel curbs.
Adding to upbeat mood, the central bank said on Sunday it would roll over three lending tools to increase support for targeted sectors of the economy. – Reuters
