Iron ore prices climb as Chinese factory growth improves demand outlook
Band Enrico Dela Cruz
March 1 (Reuters) – Iron ore futures in China jumped on Tuesday, with the benchmark Dalian price of the key steel ingredient hitting a two-week high, after data showed factory activity in the most the world’s largest steel producer rose unexpectedly in February.
The official manufacturing purchasing managers’ index remained above the 50-point mark last month, indicating some resilience in the world’s second-largest economy despite downward pressure and global uncertainty in the context. of the Russian-Ukrainian conflict.
China’s market rebound was broad-based, with other ferrous materials also advancing on fresh pro-growth rhetoric from Beijing ahead of the two-session annual meeting of its top legislature from March 5, during which he will reveal his economic objectives for the year.
The most traded iron ore contract in May on China’s Dalian Commodity Exchange DCIocv1 rose 5.3% to 736 yuan (116.60 dollars) per ton, its highest level since February 15, and after a fall of 12.4% for the whole month of February.
On the Singapore Stock Exchange SZZFJ2the iron ore April 1 contract rose 5.4% to $149.65 a tonne.
Chinese Commerce Minister Wang Wentao told a news conference on Tuesday that China had seen some recovery in consumption last month and should “do everything possible” to boost consumption this year.
“We believe that the Chinese government could try to achieve its two main goals by building ‘green’ infrastructure, which both reduces carbon emissions and stimulates economic growth,” said Iris Pang, chief economist at ING for Greater China, on what to expect from the Two Sessions.
“In terms of monetary policy, we expect the government to call its approach ‘proactive and flexible’. In other words, China remains in easing mode,” she said in a note. .
Dalian Coking Coal DJMcv1 rose 4.5% and coke DCJcv1 jumped 4.4%.
(Reporting by Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)
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