Iron Ore Prices Surge on Positive China Financial Meeting Outcomes
Iron ore prices surged following upbeat news from China’s financial meeting and robust market fundamentals. The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) rose by a substantial 2.51%, reaching 919.5 yuan per metric ton, marking its highest point since March 17. The benchmark December iron ore contract on the Singapore Exchange increased by 1.94% to $121.45 per ton at 0706 GMT.
This surge was driven by China’s commitment to address local debt risks and government debt management, reflecting confidence in the market. Analysts anticipate further price increases, and concerns persist regarding potential supply disruptions due to an impending labor strike in Western Australia. Other steelmaking ingredients on the DCE showed mixed performance, while steel benchmarks on the Shanghai Futures Exchange registered widespread gains.
