Iron ore futures posted gains on Monday as the market looked forward to a key meeting of the leadership of China’s biggest consumer to get input on stimulus measures.
The Standing Committee of the National People’s Congress of China (NPC) will meet from November 4 to 8, and all attention will be focused on taking further stimulus measures to boost the economy.
The most-traded January iron ore contract on the Dalian exchange ended day trading 0.91% higher at 779 yuan ($109.78) per tonne, after hitting its lowest value since Oct. 25. 760.5 yuan per ton at the start of the session.
Growing expectations of strong stimulus from China this week and a weaker U.S. dollar helped prices of the key steelmaking ingredient recover in the afternoon session.
But headwinds from weakening demand, rising supply and port inventories persisted, limiting price increases, analysts said.
“Port inventories built up in October and we expect to see a further increase in November and December, when ore demand is seasonally weak,” said Zhuo Guiqiu, an analyst at Jinrui Futures.
Source: Terra
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