Iron Ore Holds Best Weekly Gain Since September On China Outlook
Iron ore prices jumped more than 8% last week, after dropping below $100 a ton to the lowest since May on Monday, pulled down by the country’s persistent property crisis, which has damped the pace of steel consumption.
(Bloomberg) -- Iron ore held its largest weekly advance in six months on quietly increasing optimism over the chances of an economic recovery in top consumer China.
Chinese Premier Li Qiang downplayed problems in the country’s economy in a speech to the China Development Forum on Sunday, saying there’s still plenty of space for more policy support. Steps taken to limit risks in the property sector and local government debt have shown positive development, he said.
Iron ore prices jumped more than 8% last week, after dropping below $100 a ton to the lowest since May on Monday, pulled down by the country’s persistent property crisis, which has damped the pace of steel consumption.
ANZ Group Holdings Ltd. has said that prices had reached a floor as they’d fallen below the cost of a large amount of Chinese domestic supply. That echoed an earlier assessment from Commonwealth Bank of Australia that cost support would now become an important consideration for the market.
Iron ore is still one of the worst performing commodities this year, posting a loss of over 20%, and inventories have been piling up at Chinese ports.
Futures for April were up 0.3% at $108.45 a ton by 10:45 a.m. in Singapore. In China, iron ore futures fell in Dalian and steel contracts declined in Shanghai.
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