Chinese steel and iron ore futures rose to their highest in more than a week on Tuesday on hopes that a brightening economic outlook would spur demand for the two commodities, although property sector risks kept advances in check, Reuters reported. Stocks in Hong Kong edged up to more than 3-1/2-year highs and those in the mainland held to Monday’s sharp gains.
Optimism that the world’s second-largest economy has turned a corner and more growth-friendly policies are ahead fuelled the rally.
The most-traded iron ore for January 2015 delivery on the Dalian Commodity Exchange hit a session high of 688 yuan ($110) a ton, its loftiest since July 18.
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($135.64) and a low price of CNY 830.00 ($134.03) per dry metric ton. The price of Chinese HRC saw little movement at CNY 3,380 ($545.79) per metric ton. The price of Chinese coking coal remained essentially flat at CNY 1,390 ($224.45) per metric ton.
For the fifth consecutive day, the steel billet cash price held flat on the LME at $420.00 per metric ton. The steel billet 3-month price held steady on the LME at $425.00 per metric ton.
The 3-month price of the US HRC futures contract continues hovering around $642.00 per short ton for the fifth day in a row. The US HRC futures contract spot price remained essentially flat at $670.00 per short ton.