BY ONOME AMUGE
Iron ore futures jumped towards a fourth consecutive weekly gain, as hopes for additional stimulus to shore up China, the world’s top steel producer/consumer eclipsed worries over COVID-19 curbs and global uncertainties.
The most-traded iron ore, for May delivery, on China’s Dalian Commodity Exchange rose as much as 3.7 percent to 835 yuan a tonne, its highest since March 11.
On the Singapore Exchange, iron ore’s most-active April contract was up 2.9 percent to $152.90 a tonne.
In China’s spot market, benchmark 62%-grade iron ore was steady at $146.50 a tonne, after rising for the first time in a week, according to SteelHome consultancy data.
Construction steel rebar on the Shanghai Futures Exchange also recorded a positive result as it added 0.4 percent to its third consecutive weekly rise.
Dalian iron ore posted its highest valuation this year at 874.50 yuan a tonne on March 8, before traders trimmed positions on worries over China’s biggest COVID-19 outbreak since the one that emerged in Wuhan in 2020.
Liu He, China’s economic tsar and vice premier, had during the week called for the roll-out of market-friendly policies to support the country, amid worries over the COVID-19 surge and hit to global trade from the Russia-Ukraine conflict.
In addition,Yi Gang, China’s central bank governor, pledged to take initiatives in monetary policy, by increasing new lending and other actions to support the economy.
According to analysts at Huatai Futures, the door to domestic RRR (reserve requirements ratio) cuts and interest rate cuts has not yet been closed, and more easing policies are expected to be introduced in the future.