BEIJING: Iron ore futures extended gains for a second session on Tuesday, as sentiment was boosted by Beijing’s latest support to the property sector and lingering concerns over possible supply disruptions.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) added 2.6% to 985 yuan ($136.59) a metric ton, as of 0238 GMT.
The benchmark December iron ore on the Singapore Exchange rose 1.95% to $133.65 a ton, as of 0249 GMT.
Chinese regulators are drafting a list of 50 real estate developers eligible for a range of funding, Bloomberg News reported on Monday, citing people familiar with the matter.
China’s CSI 300 Real Estate Index climbed over 3% in the morning session.
Driving up prices of the key steelmaking ingredient is also lingering concern over near-term disruption of supply after news that around 400 train drivers for BHP’s Western Australian iron ore division will begin industrial action late this week.
Other steelmaking ingredients also advanced, with coking coal and coke on the DCE up 0.34% and 0.54%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were stronger. Rebar climbed 2.15% to 4,037 yuan a ton, hot-rolled coil rose 1.04%, wire rod strengthened 1.09% while stainless steel edged down 0.29%.
“The production restrictions in Tangshan contributed to strengthening steel market, with the strength permeating into the raw materials markets as well,” said Cheng Peng, a Beijing-based analyst at Sinosteel Futures.
A few northern cities including top steel production hub Tangshan implemented a level 2 emergency response from Sunday following a heavy air pollution forecast.
Local steel mills are typically required to curb production amid the emergency actions.
Steel prices are unlikely to drop significantly amid higher raw materials prices, analysts at Maike Futures said in a note.

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