Iron ore hits 1-week high on China stimulus, easing COVID curbs

Iron ore futures in Dalian and Singapore climbed on Monday to their highest levels since May 23, extending a relief rally spurred by easing COVID-19 curbs in top steel producer China and government efforts to shore up the battered domestic economy.

The most-traded September iron ore on China's Dalian Commodity Exchange jumped as much as 3.9 per cent to 887.50 yuan ($133.16) a tonne, before ending daytime trade at 878 yuan, up 2.8 per cent.

On the Singapore Exchange, the steelmaking ingredient's most-active June contract rose 1.5 per cent to $135 a tonne by 0702 GMT. It hit a one-week high of $135.30 earlier in the session.

"The moment the iron ore market has been waiting for has finally arrived, with falling national caseloads and a telegraphed reopening of Beijing and Shanghai," said Atilla Widnell, managing director at Navigate Commodities in Singapore.