Iron ore prices soar past $100 amid China demand speculations

April 08, 2024 (MLN): Iron ore surged above the $100-per-ton mark, fueled by speculations of a potential surge in demand from China, the world's largest steelmaker.

Futures gained more than 4% to trade near $103 a ton in Singapore, rebounding from a second consecutive weekly loss during which they hit the lowest since last May, as Bloomberg reported.

The climb came as Chinese traders returned after a long weekend.

Steel demand from construction and manufacturing “both have potential to improve” following stimulus, China Industrial Futures Co. said in a note.

“Mills are also slowly restarting blast furnaces after profits improved,” it added.

The steel-making staple remains one of the year’s worst performing major commodities, with losses that have been driven by persistent concerns that China’s drawn-out property crisis would hobble demand.

Still, some macro data from Asia’s largest economy has shown an uptick recently, with factory activity beating expectations in March.

Iron ore traded 4.5% higher at $102.80 a ton at 07:48am PST, while yuan-priced futures in Dalian climbed. Steel contracts in Shanghai were also stronger.

China is the world’s largest iron ore importer, with its mills taking the majority of cargoes in the global seaborne market.

The biggest suppliers are miners in Australia and Brazil, including Rio Tinto Group and Vale SA.

Copyright Mettis Link News