BEIJING: Iron ore futures rose on Thursday, buoyed by renewed expectations of further monetary policy easing in top consumer China and improved profitability among certain steelmakers.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 2.72% higher at 849.5 yuan ($118.00) a metric ton, its highest since March 11.

The benchmark April iron ore on the Singapore Exchange climbed 3.81% to $109.75 a ton as of 0725 GMT, partly helped by improved risk appetite after the US Federal Reserve maintained its projection of three rate cuts for this year.

The futures hit an intra-day high at $110.5 a ton, also marking their strongest level since March 11. China’s central bank said on Thursday there is ample monetary policy flexibility to implement additional reductions to banks’ reserve requirement ratio (RRR), reinforcing market expectations for further easing to bolster the economy.

Prices of the key steelmaking ingredient were also underpinned by the lingering hope of potential growth in demand in coming weeks. “Margins among the blast furnace-based steelmakers have recently improved, which may encourage mills to stockpile raw materials,” analysts at Hongyuan Futures said in a note.

Prices could be nearing a bottom amid a reset in demand expectations, with sluggish consumption from the property sector countered by robust demand from other sectors, analysts at ANZ said.

However, sustained production restriction among some steelmakers due to sluggish steel demand persisted as a headwind, they added.