Iron ore futures rose on Tuesday,
with the Singapore benchmark price hitting its highest in five months after top
steel producer China decided to scrap quarantine rules for visitors, boosting
investor sentiment.
China
will stop requiring inbound travellers to go into quarantine starting from Jan.
8, a major step towards easing its strict covid-19 containment policy that has
curbed industrial activity and domestic demand, and ignited public unrest last
month.
The
most-traded May iron ore on China’s Dalian Commodity Exchange ended daytime
trade 1.8% higher at 836 yuan ($120.11) a tonne. It hit 838 yuan earlier in the
session, its highest since Dec. 16.
On
the Singapore Exchange, the steelmaking ingredient’s benchmark January contract
rose by as much as 3.4% to $114.30 a tonne, the loftiest since late July.
Traders also cheered China’s moves to shore up its slowing economy.
“(China’s
covid) policy adjustments strengthen expectations for an economic recovery, and
that may push prices higher,” Sinosteel Futures analysts said in a note.
The
upbeat mood also boosted steel benchmarks and prices of other steelmaking
ingredients.
Rebar
on the Shanghai Futures Exchange was up 2%, while hot-rolled coil rose 1.7%,
wire rod climbed 1.9%, and stainless steel also advanced 1.9%.
Near-term
rebar and wire rod prices were likely to be range-bound this week as demand
from Chinese end-users will weaken further amid the surge in infections and
with the colder weather halting construction activities, according to Mysteel
consultancy.
Dalian
coking coal climbed 3.3% and coke gained 2.9%.
Near-term
coking coal prices were also supported by limited supply and some replenishment
demand of Chinese coke producers ahead of the New Year and Spring Festival
holidays.