SINGAPORE – Iron ore futures rose and posted weekly gains, as top steelmaker China’s easing of COVID-19 restrictions lifted hopes of a revival in demand.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended day-time trade 4.7 percent higher at 814.5 yuan ($117.17) a ton, its highest level since June 16 and rising about 6 percent this week.
On the Singapore Exchange, the benchmark December iron or was up 0.7 percent at $109.95 a ton.
A weaker US dollar and optimism over a China reopening supported market sentiment, alongside positive developments in the country’s property sector, ANZ said in a research note.
Although many Chinese embraced new freedoms after the country dropped key parts of its tough zero-COVID regime, there was mounting concern that a virus that had largely been kept in check could soon run wild.
Manufacturers and eateries keen to stay open in China are preferring to retain COVID-19 curbs until they get a clearer picture of just how workplaces will be affected by the easing of stringent measures.
Mainland China’s Health Commission reported 16,797 new corona virus caes for Dec. 8, compared with 21,439 new cases a day earlier.
China’s factory-gate prices dropped for a second month in November from a year earlier, while consumer inflation slowed, indicating weak economic activity and soft demand.
Asian shares tracked Wall Street higher on Friday amid hopes that China’s economy would pick up pace as COVID-19 curbs ease, although caution ahead of a week full of risk events, including the Federal Reserve’s policy meeting, could cap sentiment. – Reuters
