Iron ore rose more than 2% on Friday, posting its third consecutive weekly gain on hopes of strong demand fueled by new Chinese stimulus measures.
The 62% iron grade benchmark ore imported into North China changed hands at $137.36/t during morning trading, up 2.3% from Thursday's close, according to Fastmarkets MB .
Indicative Dalian Commodity Exchange iron ore futures for May delivery jumped 3% to 762 yuan ($120.12) a tonne, the highest level since October 13 to 4.6%.
"The recent recovery is based on market sentiment that could well end up impacting commodity prices in 2022, namely that China is about to open the stimulus taps again to speed up the slow economic recovery," wrote the observer. Reuters Clyde Russell.
“If this is the case, then the main beneficiaries would be iron ore and metals, as well as coking coal used to make steel.”
Utilization rates for blast furnaces at 247 steel mills across the country continue to recover, up 81.08% this week from 79.89% a week earlier, according to consulting firm Mysteel.
"There is a strong expectation of a resumption of steel production in the medium term," analysts at SinoSteel Futures said, but warned that short-term demand for steelmaking ingredients is under pressure due to the Winter Olympics and pandemic-related restrictions.
p>Huatai Futures noted that China's recent monetary policy has been in line with the demands of the central government, and further policies are expected to strengthen the world's second largest economy.
