Iron Ore Futures in Dalian Surge to Record Highs

China’s benchmark iron ore futures surged Thursday to record highs, boosted by steelmakers’ seasonal demand ahead of the holiday season.

The most actively traded iron ore futures contract on the Dalian Commodity Exchange, for May delivery, soared nearly 7% to 971 yuan ($148) per ton, the highest since the exchange launched iron ore futures in 2013. Other contracts for November, December, January, February and March delivery jumped by 3.75% to 8.23% to record highs.

Steelmakers usually stock up on raw materials ahead of the New Year and Chinese New Year, said Cai Yongzheng, chief futures analyst of Nanjing Iron and Steel Co. Ltd. In addition, he said, end products using steel such as cars and home appliances sell well during the holiday season, providing support for the price of iron ore, a key raw material in steelmaking.