Other steelmaking ingredients on the DCE gained, with coking coal and coke up 2.29% and 1.99%, respectively.Iron ore futures rallied to their highest in more than a week on Monday as revived hopes of more stimulus from top consumer China boosted sentiment.
The most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) rose 2.25% to 771 yuan (USD 105.16) a metric ton, highest since Jan. 3, as of 0251 GMT.
The benchmark February iron ore on the Singapore Exchange gained 2.01% to USD 99.1 a ton as of 0246 GMT after touching USD 100.25, highest since Jan. 3, earlier in the day.
China's central bank chief on Monday said the government will support moderately loose monetary policy to maintain ample liquidity, lifting broad investor sentiment.
This came after Reuters reported last Friday that China's central bank will likely deploy its most aggressive monetary tactics in a decade this year in an attempt to stimulate the economy and soften the blow of impending U.S. tariff hikes.
Pei Hao, a senior analyst at international brokerage Freight Investor Services (FIS), ascribed the ore price rise to the resonance of commodities caused by the oil price rally after the latest sanctions on Russian oil.
"In the medium term, both the upside and downside room for ore prices will be limited given that as consumers have locked prices and demand."
Prices of steel and steelmaking ingredients posted losses so far this month, pressured by the seasonally slow demand.
Moreover, the replenishment for both steel and steelmaking feedstocks production needs during and after the Chinese New Year holidays have neared an end, putting downward pressure on prices, analysts said.
The Chinese New Year begins from Jan. 28.
Other steelmaking ingredients on the DCE gained, with coking coal and coke up 2.29% and 1.99%, respectively.
Steel benchmarks on the Shanghai Futures Exchange advanced. Rebar added 1.53%, hot-rolled coil rose 1.6%, wire rod climbed 1.05% and stainless steel advanced 0.95%.
