BEIJING, Aug 26 (Reuters): Iron ore futures prices rebounded on Monday to hit their highest in nearly two weeks, supported by a softer dollar and prospects of steel demand picking up in the coming peak construction season in top consumer China.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) ended daytime trade 3.45 per cent higher at 750.5 yuan ($105.40) a metric ton, hitting the highest since August 13.
The benchmark Septem-ber iron ore on the Singapore Exchange climbed 4.4 per cent to $100.3 a ton, as of 0715 GMT, also marking the highest since Aug. 13.
The dollar hovered near an eight-month low, after US Federal Reserve Chair Jerome Powell's dovish remarks on Friday reinforced expectations of an interest rate cut in September.
A weaker dollar makes dollar-priced commodities less expensive for buyers using other currencies.
"The prospect of easing monetary policy boosted sentiment across the commodity complex," ANZ analysts said in a note.
A marginal improvement in fundamentals also supported prices of the key steelmaking ingredients, although more equipment maintenance by Chinese steelmakers after losses widened remained a headwind, said analysts.
Supply-side pressure eased a bit with lower domestic output amid falling ore prices, while expectations of improved downstream steel demand in the coming month beefed up, analysts at Sinosteel Futures said in a note.
Sentiment was also boosted by news that China's central bank will adhere to a supportive monetary policy.
Other steelmaking ingredients on the DCE recorded gains, with coking coal and coke up 2.52 per cent and 3.41 per cent, respectively.
Steel benchmarks on the Shanghai Futures Exchange strengthened. Rebar advanced 2.64 per cent, hot-rolled coil added 2.72 per cent, wire rod climbed 1.42 per cent and stainless steel rose 0.8 per cent.
China started to temporarily halt its steel capacity replacement programme from August 23 while working to revise the measures, in a move that's expected to limit capacity expansion.
© 2024 - All Rights with The Financial Express
