Chinese iron ore futures extended last week's strong gains to hit a 10-month high on Monday, as declining inventories at Chinese ports fueled a rally on optimism about the lifting of COVID-19 restrictions stifling steel demand.
Coking coal also pushed gains to six-week highs as China decided to revive its slowing economy.
The September iron ore gauge on China's Dalian Commodity Exchange rose to 948 yuan at the start of the session, up 925 yuan/metric ton ($139.02) and Dalian coke by day trading +0.7%, its best level since the beginning of August. ended with. Coal was +4%; Iron ore in Singapore rose +0.7% to $143.75/t, heading for the highest close in a month.
"Slower arrivals and continued strong blast furnace capacity utilization rates and daily purchases should result in port iron ore inventories reduced by another 2-3 million tons this week," Atilla Widnell, managing director of Navigate Commodities in Singapore, told Reuters. she said.
According to SteelHome, port iron ore inventory in China fell to 132 million tons last week, the lowest level since late September.
"Rio presents an extraordinary asymmetrical risk/reward opportunity, with stocks just above a strong 10-year support base," Brian Kapp said in a recent bullish analysis on Seeking Alpha.
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