Iron-ore hits one-month high as China stock rally lifts sentiment
Iron-ore prices rose for a second straight session on Thursday, reaching a one-month high as a sharp rally in Chinese equities and improving steel margins boosted investor sentiment.
The most-traded iron-ore contract on China's Dalian Commodity Exchange closed daytime trade up 1.77% at 691 yuan ($103.61) a metric ton, its strongest level since October 8.
The benchmark December iron-ore on the Singapore Exchange climbed 1.2% to its highest since October 1 at $92.95 a ton, as of 0705 GMT.
A sharp rebound in Chinese stocks on Wednesday somewhat lifted sentiment across commodity markets, analysts at broker Everbright Futures said in a note.
Steel margins have recently improved, fuelling expectations of higher hot metal output ahead, according to analysts at broker Galaxy Futures.
Higher hot metal output indicates more consumption of feedstocks including iron-ore.
"Iron-ore prices are currently more influenced by funds and sentiment...demand is likely to show positive signals towards year-end," said Galaxy Futures analysts.
Coking coal and coke, other steelmaking ingredients, rebounded as supply recovery remained slow despite repeated government calls to speed up the resumption of production to ensure supply.
Coking coal rose 3.04% while coke posted a 3.65% gain, its biggest daily rise since late August, to reach its highest since October 30.
Many coal mines in northern China's Shanxi province were closed amid stringent safety inspections following a fatal accident in May.
Steel benchmarks on the Shanghai Futures Exchange were broadly stronger amid higher raw materials prices. Rebar added 1.43%, hot-rolled coil rose 1.49%, wire rod advanced 1% and stainless steel jumped 3.1%.
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