Iron ore prices rose on Tuesday as anticipates for additional stimulus from Chinese (China) policymakers resurfaced.
Benchmark 62 percent Fe fines imported into Northern China increased by 0.37 percent to $137.60 per tonne.
After falling 0.37 percent the day before, the most traded May iron ore prices agreement on China’s Dalian Commodity Exchange ended the day 1.52 percent higher at 969.5 yuan ($135.12) a metric tonne.
Before giving up some of its earlier gains. The benchmark January iron ore on the Singapore Exchange was up 0.63 percent at $135.85 a tonne as of 07:58 GMT. This was after it reached an intraday high of $136.35 a tonne, the highest since February.
China’s leaders convened behind closed doors on Monday to discuss economic goals and devise plans for stimulus in 2024. According to Shree Metal Prices, which cited four people with knowledge of the discussions.
This followed official data showing that China’s consumer price index fell 0.5% in November compared to the same month last year and October. In comparison that showed 0.1 percent declines both monthly and annually, this represents a steeper decline.
The anticipation of a winter stocking wave among mills with low raw material inventories is another factor supporting the prices of the essential ingredient for steelmaking.
Huatai Futures analysts stated in a note that “ore usage will continue at a relatively higher level, in part due to the lingering anticipation of winter stocked for raw materials.“