Dalian iron ore futures ended 2023 with 55.1% jump, driven by stimulus measures in China, while the contract rose on Friday, snapping a two-day losing streak.
The most-traded May iron ore on China’s Dalian Commodity Exchange rose 0.3% to973.5 yuan ($137.31) per metric ton at closing.
The contract marked its fifth consecutive month gains, recording a monthly riseof 6.9%.
On the Singapore Exchange, the benchmark Febuary iron ore SZZFG4 was up 1.3% at $137.24 a metric ton.
For the month, the contract recorded a 7.4% rise, also marking its fifth consecutive month of gains.
The benchmark contract concluded the year with gainsof 26.4%.
This year, iron ore prices defied market expectations, underpinned by stimulus in top consumer China.
“The overall iron ore price trend this year is pretty clear – prices in the second-half are higher than that in the first-half,” said Pei Hao, a Shanghai-based analyst at international brokerage FIS.
“The unusually high demand in the second-half of the year lent solid support to prices; a series of supportive policies on the property market, coupled with expectations on further economic stimulus during the top-decision making meetings in December also acted as tailwinds,” he added.
China’s manufacturing activity likely contracted for the third consecutive month, a Reuters poll showed on Thursday, weighed by soft demand for manufactured goods.
China’s central bank said on Thursday it would step up macroeconomic policy adjustments to support the economy and promote a rebound in prices, amid signs of rising deflationary pressures.
Steel benchmarks on the Shanghai Futures Exchange were mixed. The most-active rebar contract SRBcv1 and stainless steel SHSScv1 were down0.1% and 2.4%, respectively. Meanwhile, hot-rolled coil SHHCcv1 and wire rod SWRcv1 were each up0.1% and 4.6%.
Other steelmaking ingredients, such as Dalian coking coal DJMcv1 and coke DCJcv1, declined 0.8% and 0.4%, respectively.
Source: Hellenic Shipping News
