Iron ore resumed its rally in Singapore on Friday, putting it on
track for its biggest weekly gain in 11 weeks, as policy support for China’s
faltering economic recovery and optimism over its near-term demand prospects
underpinned prices.
The steelmaking ingredient’s Chinese benchmark was also poised
to post its biggest weekly gain since June, ahead of a seasonal pick-up in
domestic construction activity from September to October.
“As we enter the
seasonally bullish Sept/Oct onshore season we are of the opinion dips will find
support,” Al Munro at broker Marex said in a note.
Iron ore’s benchmark September
contract on the Singapore Exchange was up 2% at $114.15 per metric ton, as of
0700 GMT, after Thursday’s 1.2% decline that followed a five-session rally. It
has gained more than 6% this week.
The most-traded January iron ore
on China’s Dalian Commodity Exchange ended daytime trade 0.5% higher at 827
yuan ($113.49) per ton, after swinging back and forth.
Spot iron ore has also climbed
more than 6% this week, trading at a four-week high of $116.50 on Thursday,
SteelHome consultancy data showed.
Support for iron ore was intact
despite a Mysteel consultancy report saying some mills in China’s steelmaking
hub of Tangshan city have suspended sintering operation for one week from Aug.
24 as required to improve air quality.
Top iron ore consumer China is
aiming to achieve a supply and demand balance in its steel market this year,
according to the industry ministry, even as steelmakers face mounting pressure
from a floundering economy and property market distress.
Other steelmaking ingredients on
the Dalian exchange fell following recent gains, with coking coal and coke down
1.2% and 0.7%, respectively.
Steel benchmarks in Shanghai were
subdued. Rebar fell 0.5%, hot-rolled coil dropped 0.4% and stainless steel lost
0.8%, while wire rod added 0.1%.
Mining.com