SINGAPORE
(BLOOMBERG) - Iron ore topped up its biggest weekly gain in 13 weeks as traders
tracked China's moves to rein in Covid-19 restrictions, which have weighed on
steel demand this quarter.
Futures
in Singapore crept higher on Monday morning (June 6) after surging more than 7
per cent last week on optimism over China's
plans to get the economy moving again after sweeping lockdowns.
The
Beijing authorities said the capital will resume public transport in most
districts, restart dine-in restaurant services and allow workers to return to
offices. This comes after the city achieved zero new community cases in most of
its 16 districts.
The steel-making ingredient shot through US$140 (S$192) a tonne last week after
spending most of May fluctuating at around US$130 a tonne.
Investors
are tracking what is next for demand after a terrible period for construction
and manufacturing activity. There are expectations for more infrastructure
spending.
In
a positive sign, iron ore inventories at major ports plunged to their lowest
levels for the year, reaching an eight-month low, according to Steelhome data.
Margins for steel making are expanding again after shrinking to a 15-month low
in May.