Iron ore futures in China rose for a second session to hit a one-week high on April 11 as buyers replenished their stockpiles of the steelmaking raw material amid signs of a pickup in steel demand.
Steel demand from China's construction sector, among its biggest consumers, usually gains steam during spring as activity increases.
The most-traded September iron ore on the Dalian Commodity Exchange DCIOcv1 was up 0.8% at 454 yuan/t ($72/t) by 0252 GMT, after initially hitting 461 yuan/t, its highest since April 2.
Prices were spurred higher by "restocking demand as China's steel demand in downstream markets picked up," Commonwealth Bank of Australia analyst Vivek Dhar said in a note.
Firmer futures had inspired a similar recovery in spot iron ore prices, pushing up bids in the physical market, traders said.
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB jumped 2.1% to $65.3/t on April 10, also the strongest level in a week, according to Metal Bulletin.
While seasonal steel demand should underpin raw material prices, "there will be more short-term volatility" in spot rates amid swings in futures, said a Shanghai-based trader.
Iron ore, along with other commodity futures and risky assets, got a boost on April 10 after Chinese President Xi Jinping promised to open China's economy further and lower import tariffs, helping calm worries over trade tensions between China and the United States. The most-active October rebar on the Shanghai Futures Exchange SRBcv1 gained 0.1% to 3,423 yuan/t.
Sources:sxcoal
Please Contact Us at：
admin@xindemarine.com
.gif)
