Iron ore futures surge on China steel demand, spot price at 13-month high

By Enrico Dela Cruz | Reuters

Iron ore futures firmed on Tuesday, with both Dalian and Singapore benchmark contracts gaining more than $3 on expectations that steel usage in China would remain robust in the coming months and offset sluggish demand overseas.

The Dalian Commodity Exchange’s most-traded iron ore for delivery in January 2021 closed the session 3.5% higher at 863 yuan ($124.51) a tonne, rising for a fourth session in a row.

Iron ore’s front-month September contract on the Singapore Exchange climbed 3% to $120.42 a tonne in afternoon trade, extending gains into a third straight session.

“Market participants are looking forward to a strong second half for Chinese steel demand which should maintain steel and iron ore prices above previous expectations,” said Justin Smirk, senior economist at Westpac Economic Research…Full Story