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Iron ore prices are anticipated to climb for a fifth week, defying the impact of Chinese intervention.

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Iron ore futures have rebounded from earlier losses, and consequently, they are anticipated to experience a fifth consecutive week of growth on Friday. This positive momentum is attribute to the optimism in China, the top consumer, which has successfully overcome obstacles created by the most recent authorities’ intervention.

On China’s Dalian Commodity Exchange (DCE). The most traded January iron ore contract concluded day trade 0.61% higher at 986.5 yuan ($136.80) per metric tonne.

On the Singapore Exchange, the benchmark December iron ore price increased by 0.88% to $134.35 per tonne after falling by 1.15% the previous session.

The country’s largest steel consumer, Beijing’s debt-ridden property sector, saw measures to revive it. Which is why the price of the key feedstock for steelmaking has remained strong.

Iron Ore Futures Resilience in China

According to a Shree Metal Prices News story published on Thursday. China might permit banks to provide unsecured short-term loans to eligible real estate developers for the first time.

This followed reports that a list of 50 real estate developers qualifie for funding is being compile by Chinese regulators.

This has helped to offset some of the losses from the most recent government action.

In an attempt to stifle a price surge, China’s state planner announced that it would closely monitor developments in the iron ore market and tighten oversight of spot and futures trading, which resulted in a price decline on Thursday.

Everbright Futures analysts stated in a note that. “Iron ore prices are likely to consolidate in the short run amid the joint effect of favourable and unfavourable factors.”

In response to supply disruptions, other ingredients used in the steel industry strengthened. Coking coal & coke increased 3.87% and 3.29% on the DCE, respectively.

Concerns about a shortfall of coal in the near future were stoked by the temporary suspension of some coal mines in Lvliang city. The biggest coal production hub in Shanxi province, north China, owing to increased safety inspections, according to consultancy Mysteel.

Higher raw material prices drove up steel benchmarks on the Shanghai Futures Exchange. Stainless steel gained 0.92%, wire rod increased 1.3%, hot-rolled coil increased 0.85%, and rebar added 0.66%.

SHREE METAL PRICES