Dalian iron ore futures surged nearly 6 percent and Shanghai steel climbed to its highest in almost nine months on Monday, extending last week's rally as a recovery in China's housing prices boosted hopes for demand for the two commodities.
That should spell more gains for spot iron ore, which has risen more than 30 percent to be this year's top performing commodity.
Data on Friday showed home prices in China climbed at their fastest pace in almost two years in February, with prices in smaller cities also marking their first increase since 2014.
"This will boost sentiment among property developers, they will have more confidence in the property market so they will build more. That will support demand for steel and iron ore," said Helen Lau, analyst at Argonaut Securities in Hong Kong. "The worry is the supply response to the rally, which will eventually cap price rises," Lau said.
The most-traded iron ore for September delivery on the Dalian Commodity Exchange surged 5.9 percent to hit its exchange-set ceiling of 431 yuan ($67) a ton.
Nenhum comentário:
Postar um comentário