China’s iron ore futures rose for a sixth straight session on Friday, marking their first weekly gain since mid-December as steel mills and traders replenished their stocks of the steelmaking ingredient ahead of the Lunar New Year holiday.
Market participants also kept a wary eye on the COVID-19 outbreak in China’s Hebei province surrounding Beijing, analysts and traders said.
Iron ore on the Dalian Commodity Exchange ended daytime trading up 2.3% at 1,067 yuan ($165.04) a tonne, after earlier hitting 1,079 yuan, its strongest since Dec. 22. Iron ore on the Singapore Exchange climbed 0.7% to $169.03 a tonne by 0714 GMT.
The restocking demand pushed iron ore spot prices in top steel producer China above $170 a tonne on Thursday, SteelHome consultancy data showed, near a nine-year peak hit last month.
“As a major steel(-producing) province, changes in steel mills’ (operations) and logistics will cause fluctuations in the steel market and futures,” Sinosteel Futures analysts said in a note.
