Iron ore futures advanced on Monday after Beijing signalled fresh policy support to boost domestic demand.
Chinese Premier Li Qiang chaired a State Council executive meeting that outlined coordinated fiscal and financial measures aimed at stimulating consumption and investment, including interest subsidies on loans for micro, small and medium-sized enterprises to lower financing costs and encourage private investment.
Iron ore futures were also supported by a gradual rebound in Chinese steel production and restocking demand ahead of the Chinese New Year holidays in February. However, some analysts cautioned that higher iron ore inventories at ports could cap further gains.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.92pct to 822.5 yuan (USD 117.9) per ton. Coking coal and coke futures climbed 4.21pct and 1.35pct to 1,238 yuan (USD 178) and 1,770 yuan (USD 254) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures increased 0.6pct to 3,165 yuan (USD 454) per ton, while HRC gained 0.55pct to 3,311 yuan (USD 475) per ton. Wire rod slipped 1.23pct to 3,443 yuan (USD 494) per ton, while stainless steel futures rose 1.21pct to 13,855 yuan (USD 1,986) per ton.
1 USD / 6.98 yuan
