Iron ore futures post weekly gains on China demand revival hopes

Iron ore futures rose on Friday and posted weekly gains, as top steelmaker China's easing of COVID-19 restrictions lifted hopes of a revival in demand.

The most-traded January iron ore on China's Dalian Commodity Exchange TIO1! ended day-time trade 4.7% higher at 814.5 yuan ($117.17) a tonne, its highest level since June 16 and rising about 6% this week.

On the Singapore Exchange, the benchmark December iron ore (SZZFZ2) was up 0.7% at $109.95 a tonne, as of 0700 GMT.

A weaker U.S. dollar and optimism over a China reopening supported market sentiment, alongside positive developments in the country's property sector, ANZ said in a research note.

Although many Chinese embraced new freedoms after the country dropped key parts of its tough zero-COVID regime, there was mounting concern that a virus that had largely been kept in check could soon run wild.

Manufacturers and eateries keen to stay open in China are preferring to retain COVID-19 curbs until they get a clearer picture of just how workplaces will be affected by the easing of stringent measures.

Mainland China's Health Commission reported 16,797 new coronavirus cases for Dec. 8, compared with 21,439 new cases a day earlier.

China's factory-gate prices dropped for a second month in November from a year earlier, while consumer inflation slowed, indicating weak economic activity and soft demand.

Asian shares tracked Wall Street higher on Friday amid hopes that China's economy would pick up pace as COVID-19 curbs ease, although caution ahead of a week full of risk events, including the Federal Reserve's policy meeting, could cap sentiment.

The most-active rebar contract on the Shanghai Futures Exchange RBF1! rose 3.4%, hot-rolled coil EHR1! climbed 2.5%, wire rod (SWRcv1) advanced 2.9%, and stainless steel HRC1! edged 1.4% higher.

Dalian coking coal NYMEX:ACT1! and coke (DCJcv1) rose 3.6% and 2.4% respectively.

($1 = 6.9512 yuan)