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Iron ore futures climbed for the second consecutive session on Wednesday, aided by improved risk sentiment amid efforts by authorities in top consumer China to shore up market confidence.
The most traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade 1.77% higher at 979 yuan ($136.53) a metric ton, hitting the highest since Jan. 12.
The benchmark February iron ore contract SZZFG4 on the Singapore Exchange was up 0.99% at $133.3 a ton, as of 0723 GMT, the highest since Jan. 12.
China’s central bank said it would use various policy tools to keep liquidity reasonably ample, improve credit structure and step up support for private firms and small firms.
Beijing will also boost efforts to attract foreign firms, the country’s top financial regulator said.
China’s securities regulators have asked some hedge fund managers to restrict short selling in its stock index futures market, two sources said, as part of efforts to stabilise sinking stocks.
This came after Beijing said on Monday it would take more forceful and effective measures to stabilise market confidence, lifting sentiment in the stock and commodities markets.
At least two iron ore cargoes from Fortescue Metals Group FMG.AX, the world’s No.4 supplier, are facing unusual customs delays at north China’s Caofeidian port due to inspections for solid waste, sources with knowledge of the matter said.
“The pick-up in ore demand will be slow in the short term as even though the number of blast furnaces that resumed operations exceeded that was under maintenance, lingering thin steel margins curbed buying appetite,” analysts at Sinosteel Futures said in a note.
Other steelmaking ingredients on the DCE posted gains, with coking coal DJMcv1 and coke DCJcv1 up 1.51% and 1.27%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were higher. Rebar SRBcv1 advanced 0.88%, hot-rolled coil SHHCcv1 rose 0.84%, wire rod SWRcv1 added 0.19% and stainless steel SHSScv1 climbed 0.91%.