Iron ore futures rise on hopes

The most-traded January iron ore on China’s Dalian Commodity Exchange gained 0.8% to 776.5 yuan ($109.97) a tonne, as of 0215 GMT, rising about 5.2% so far in the week.

On the Singapore Exchange, the benchmark December iron ore was up 1.3% at $104.30 a tonne. China is set to announce an easing of its Covid quarantine protocols in the coming days and a reduction in mass testing, sources told Reuters, a marked shift in policy after anger over the world’s toughest curbs fuelled widespread protests.

Meanwhile, China reported a slight dip in new daily Covid-19 cases on Dec. 1, the National Health Commission said. Market sentiment has also been buoyed by China’s measures to support its struggling property sector, a key consumer of steel.

These measures should have a better chance of developing into stronger demand for steel and iron ore amid a shift away from strict adherence to the zero-Covid policy, ANZ said in a note.