BEIJING- Iron ore futures rose for a second session on Tuesday, as better-than-expected loan data from the world’s top iron ore consumer China and a stronger yuan bolstered investor sentiment.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) traded 1.36 percent higher at 854 yuan ($117.18) a metric ton.
The benchmark October iron ore on the Singapore Exchange was 0.6 percent higher at $118.05 a metric ton, as of 0231 GMT, its highest level since March 31.
Chinese banks extended 1.36 trillion yuan in new yuan loans in August, up from 345.9 billion yuan in July, data from People’s Bank of China showed on Monday, higher than the estimated 1.20 trillion yuan in a Reuters poll.
This came after the consumer price index (CPI) rose 0.1 percent in August from a year earlier, the National Bureau of Statistics showed on Monday, after falling 0.3 percent in July.
“Better-than-expected Chinese credit data, signaling stabilization in household demand for mortgages, also boosted sentiment,” analysts at ING bank said in a note.
Other steelmaking ingredients also strengthened, with coking coal and coke on the DCE up 4.47 percent and 2.81 percent , respectively, to their highest levels in six months. – Reuters
