Iron ore extends rally amid Chinese optimism

IRON ore has sustained its upward trajectory for a sixth consecutive session, approaching its strongest finish in more than half a year as traders anticipate renewed Chinese appetite for the steelmaking commodity, said Bloomberg News in an article today.Benchmark futures momentarily exceeded $107 per ton – the peak intraday level since late February’s surge triggered by Australian mine disruptions – before retreating slightly. The streak represents the metal’s most sustained advance since January.Market analysts at CITIC Securities attributed the momentum to “significant downstream demand recovery” following China’s recent military display, which reinforced seasonal restocking requirements. Additional support stems from speculation surrounding potential US Federal Reserve interest rate reductions.Beijing staged a grand military procession earlier this month, commemorating eight decades since Japan’s wartime surrender whilst demonstrating the nation’s expanding geopolitical influence. Northern Chinese steelworks faced production curtailments during the event to minimise pollution levels.Prices received further underpinning from reports that Guinea’s government is pressuring Rio Tinto to establish steelmaking facilities near its substantial Simandou iron ore project. The development suggests authorities are challenging companies focused purely on raw material exports.A Rio Tinto representative confirmed the company’s commitment to collaborating with industrial partners and officials on pellet plant feasibility studies, whilst emphasising current priorities around inaugural Simandou shipments.Singapore iron ore contracts climbed 1.5% to $107 per ton during morning trading, whilst yuan-denominated Dalian futures reached July highs. Shanghai steel contracts similarly advanced.Elsewhere in base metals, London Metal Exchange copper gained 0.2% to $9,930 per ton. Aluminium increased 0.1% following its strongest fortnight performance amid surging warehouse order activity.The post Iron ore extends rally amid Chinese optimism appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com