Prices of iron ore futures edged higher for the third straight session on Wednesday, as stronger steel production outweighed a raft of weaker economic data in top consumer China.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 0.38% at 786.5 yuan ($108.40) a metric ton, as of 0233 GMT. The benchmark December iron ore on the Singapore Exchange was 0.48% higher at $103.05 a ton.
“Iron ore markets again marked time above $100 with the increase in Chinese steel production supporting prices,” Westpac analysts said in a note.
China’s steel output remains well above average rates for this time of year, with production over the last three weeks up 9.5% versus the average for the same period in the last three years, Westpac said, citing data from the China Iron and Steel Association.
China is both the world’s top consumer and producer of the metal.
