Iron ore’s most-active May contract on China’s Dalian Commodity Exchange ended daytime trading 1.4% higher at 719 yuan ($112.78) a tonne, rising for a fourth straight session and touching 725.50 yuan earlier in the day.
“The current rise in raw materials and the limited production during the Winter Olympics have boosted steel prices to a certain extent, but the demand side is still weak,” Sinosteel Futures analysts said in a note.
China is expected to curb mills’ operations in its steel production hubs to ensure clean air during the Beijing 2022 Olympics next month.
But analysts said hopes for an easing of steel production controls after the Games have helped underpin iron ore, along with some restocking demand ahead of the Chinese Spring Festival holidays starting Jan. 31.
“After the Winter Olympics, there is an opportunity to relax the production limit (for steel),” analysts at Zhongzhou Futures said in a note.
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(With files from Reuters)
