BEIJING: Dalian iron ore futures rose for a fourth consecutive session on Monday, buoyed by optimism over property sector-related stimulus and supportive fundamentals, although a weakening steel market and fears of tightened government supervision capped the gains. The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) was up 0.63% at 956.5 yuan ($131.18) a metric ton, as of 0213 GMT, after touching the highest level since August 2021 at 973.5 yuan a ton earlier in the session.
China will firmly implement policy pledges of the property market to meet the housing demands of the people and promote high-quality development of the sector, state media reported on Saturday, citing Ni Hong, minister of Housing and Urban-Rural Development.
“Any improvement would require a substantial restocking of raw materials, with weak margins pushing steel mills to work down the inventory,” analysts at ANZ bank said in a note.
The benchmark December iron ore on the Singapore Exchange was, however, 0.24% lower at $126.5 a ton, as of 0219 GMT, dragged down by hawkish comments from US Federal Reserve Chair Jerome Powell.
Caution also prevailed over growing risks of possible tightening of government supervision following a price rally.
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