Dalian iron ore futures prices snapped a four-day losing streak on Thursday, aided by China’s latest stimulus measure and accelerated purchases by steel mills.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.53% higher at 754.50 yuan ($102.91) a metric ton.
The benchmark February iron ore (SZZFG5) on the Singapore Exchange closed 0.78% higher at $97.20 a ton.
Top consumer China has expanded the scope of a consumer goods trade-in scheme in an effort to boost subdued domestic demand, according to an official policy document released Wednesday.
“There is … some good news … Recent policy communication suggests that there will be a greater focus on supporting consumption this year,” ING analysts said in a note.
Still, industrial metals have had a muted start to 2025 amid geopolitical tensions, the uncertain path for China’s economic recovery and rising protectionism, ING analysts said in a separate note.
Official data on Thursday showed China’s consumer inflation slowed in December, while factory-gate deflation extended into a second year.
A combination of job insecurity, a prolonged housing downturn, high debt and tariff threats from U.S. President-elect Donald Trump has hit demand, even as Beijing ramps up stimulus to revive its consumer sector.
On the supply side, shipments from top producers Australia and Brazil have decreased, while total shipment volumes to the country have dropped, Chinese consultancy Hexun Futures said in a note.
Meanwhile, Chinese steel mills have accelerated their pre-holiday buying of imported iron ore, whose stocks have touched a ten-month high, Chinese consultancy Mysteel said on its website.
Other steelmaking ingredients on the DCE posted losses, with coking coal NYMEX:ACT1! and coke (DCJcv1) down 1.48% and 0.79%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange declined. Rebar RBF1! dipped 0.65%, hot-rolled coil EHR1! ticked down 0.57%, wire rod (SWRcv1) lost about 0.6% and stainless steel HRC1! gained nearly 1.6%.
Source: Reuters