China's iron ore futures rose as much as 1.6% on Thursday, recovering from a two-day loss, as sentiment was lifted by firm demand from downstream sectors.
The most-traded iron ore futures on the Dalian Commodity Exchange, for January 2020 delivery, closed up 0.7% to 621 yuan ($88.25) a tonne.
However, prices for spot cargoes of benchmark iron ore with 62% iron content for delivery to China fell to $85 a tonne on Wednesday.
Australian mining giant Rio Tinto said it expected a 5% increase in its iron ore shipment in 2020.
The construction steel rebar on the Shanghai Futures Exchange, which extended gains to a third session, rose 0.5% to 3,367 yuan per tonne.
"Expectations for steel consumption was pretty bad, but fell too much," said Zhao Yu, an analyst with Huatai Futures. "Now it turns out (consumption is) not that bad, so prices recouped."
She added that the consumption was mainly in real estate and infrastructure construction sectors.
Hot-rolled coil, used in cars and home appliances, for January delivery, edged up 0.1% at 3,351 yuan.
A China Iron & Steel Association official said on Tuesday the investment and scale in infrastructure constructions could help prop up steel output in 2020. Dalian coking coal, for January delivery, dived 1.8% to 1,236 yuan a tonne.
Dalian coke stood at 1,737 yuan, down 0.03% to 1,738 yuan.
Shanghai stainless steel futures fell 0.2% to 14,985 yuan per tonne. Factory activity in China shrank for the sixth straight month in October, official data showed on Thursday, pointing to further pressure on its manufacturers as they grapple with the weakest economic growth in nearly 30 years.
Leaders from the US and China encountered a new hurdle in their struggle to end a damaging trade war when Chile cancelled the APEC where the two countries were supposed to meet.
Beijing could remove extra tariffs imposed since last year on US farm products to ease the way for importers to buy up to $50 billion worth, rather than direct them to buy specific amounts, the head of a government-backed trade association said. Fitch Ratings agency expected the infrastructure investment will support China's fixed-asset investment growth in 2020.
Comments
Comments are closed.