The most-traded October iron ore on the Singapore Exchange climbed as much as 2% to hit $117 per metric ton, the contract’s strongest level since early-April.
The steelmaking ingredient’s most-active January contract on China’s Dalian Commodity Exchange ended morning trade 1.2% firmer at 861.50 yuan ($118.18) per ton, just below a contract high of 865.50 yuan hit on Monday.
“The introduction and implementation of economic stimulus policies are worth looking forward to,” Huatai Futures analysts said in a note. Beijing has released a series of measures to revive slowing growth, with the central bank and top financial regulator last week easing some borrowing rules to aid homebuyers.
Investors, however, were urged to restrain themselves and be mindful of the anticipated steel production curbs in China this year. “The focus remains on steel production cuts, which will commence later this year, with the only question being when,” Westpac analysts said in a note.
