Iron-ore extends gains above $140 on optimism for China demand

Futures in Singapore crept higher on Monday morning after surging more than 7% last week on optimism over China’s plans to get the economy moving again after sweeping lockdowns.

Beijing authorities said the capital will resume public transport in most districts, restart dine-in restaurant services and allow workers to return to offices. This comes after the city achieved zero new community cases in most of its 16 districts.

The steel-making ingredient shot through $140 a ton last week after spending most of May fluctuating around $130 a ton. Investors are tracking what’s next for demand after a terrible period for construction and manufacturing activity. There’s expectations for more infrastructure spending.

In a positive sign, iron ore inventories at major ports plunged to their lowest levels for the year, reaching an eight-month low, according to Steelhome data. And steelmaking margins are expanding again after shrinking to a 15-month low in May.