Chinese iron ore futures rose for a fifth straight session on Tuesday, supported by a bullish outlook for domestic demand stemming from hopes of more stimulus, while global supply-related issues also aided sentiment.
Iron ore on the Dalian Commodity Exchange rose 3.6% to close at 711 yuan ($100.07) a tonne, and gained 13% over the five-day rally.
On the Singapore Exchange, the front-month June contract was up 1.4% at $92.56 a tonne in afternoon trade, after rising 3.4% in the previous session.
Analysts said the overall market sentiment was upbeat, lifted by positive data from an early-stage trial for a COVID-19 vaccine and ahead of the Chinese parliament’s key annual session on Friday.
China’s parliament begins its annual session this week and is expected to unveil stimulus measures to spur an economy battered by the coronavirus.
“Adding to positive sentiment was China flagging more stimulus at the upcoming National People’s Congress,” said Tapas Strickland, director of economics at National Australia Bank, citing China’s plans to develop its western regions.
“We expect the growth momentum in the economy will continue to be carried forward in the coming months,” said Helen Lau, analyst at Argonaut Securities. “Steel demand will continue to be underpinned.”
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