The most-traded May iron ore on China’s Dalian Commodity Exchange rose 2.8% to 1,017.5 yuan ($142.50) per metric ton at closing.
On the Singapore Exchange, the benchmark February iron ore was up 0.6% at $141.76 a metric ton.
The three-year forward gross capacity additions stand at 150 million tons, the OECD said in a report.
The new capacity additions are expected to be dominated by India and ASEAN, reflecting a concentration in emerging markets, Citi analysts said in a report.
China’s central bank made 350 billion yuan ($49.1 billion) in loans to policy banks through its pledged supplementary lending (PSL) facility in December, data showed, fuelling expectations of increased support for the country’s ailing housing sector.
China’s factory activity expanded at a quicker pace in December with the Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rising to 50.8 last month from 50.7 in November, marking the fastest expansion in seven months and surpassing analysts’ forecasts of 50.4.
Expectations of more stimulus in 2024 mounted after President Xi Jinping said on Sunday that China would consolidate and enhance the positive trend of its economic recovery this year.
The breaking of the psychological level of 1,000 yuan a ton, however, may trigger downside risks from a possible government intervention, analysts said.
Steel benchmarks on the Shanghai Futures Exchange were mostly up. The most-active rebar contract strengthened 0.5%, hot-rolled coil grew 0.6% and stainless steel gained 1.4%. Meanwhile, the wire rod was last unchanged.
Other steelmaking ingredients Dalian coking coal DJMcv1 and coke DCJcv1 inched up 3.1% and 2.3% respectively.
Source: Hellenic Shipping News
