Iron ore rose – with futures rising above $100 per ton – amid speculation that demand may rise in China, the largest country with steel makers. Futures contracts rose more than 4% to trade near $103 a ton in Singapore, rebounding from a second straight weekly loss during which they reached their lowest level since last May. The rise came as Chinese traders returned after a long weekend.
Steel demand from the construction and manufacturing sectors “both have the potential to improve” after the stimulus, China Industrial Futures said in a research note. “Factories are also slowly restarting blast furnaces after improved profits.”
This steel industry staple remains one of the worst-performing commodities since the start of 2024, with losses driven by persistent fears that China’s protracted real estate crisis will crimp demand. However, some macroeconomic data in Asia’s largest economy showed a slight increase recently, with factory activity exceeding expectations in March.
Iron ore rose 4.5% during trading at $102.80 per ton as of 10:48 am in Singapore, while yuan-denominated futures contracts rose in Dalian. Steel futures also rose in Shanghai.
China is the world’s largest importer of iron ore, with its factories receiving the majority of seaborne shipments on the global market. The largest suppliers to China are mining companies in Australia and Brazil, including Rio Tinto Group and Vale SA.
