SINGAPORE- Iron ore futures prices climbed on Thursday to hit their highest in more than a week, buoyed by firmer seasonal demand prospects ahead of a national holiday in top consumer China.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 2.72 percent higher at 698.5 yuan ($98.11) a metric ton.
The contract hit an intraday high of 701.0 yuan, its strongest level since Sept. 4.
The benchmark October iron ore on the Singapore Exchange was 0.93 percent higher at $93.6 a ton.
Chinese steelmakers have built up their inventory of imported iron ore recently to prepare for the upcoming Mid-Autumn Festival holiday over Sept. 15-17, as replenishment is expected to become less convenient during holidays, Chinese consultancy Mysteel said in a note.
The restocking of inventories may lead to a rebound in iron ore demand in the short term, Chinese financial information site Hexun Futures said.
Analysts have differing opinions on the ‘Golden September’ peak period of the steel industry, with some believing the downward trend in demand and cost reduction is difficult to change, while others believe demand may recover, and the key lies in steel transactions and building materials demand, Hexun Futures said.
