Iron ore rallies on hopes
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) was 2.15% higher at 809.5 yuan ($112.78) a metric ton, as of 0250 GMT.
The benchmark August iron ore on the Singapore Exchange was 2.81% higher at $103.6 a ton. China left its benchmark lending rates unchanged, in line with expectations after slightly better-than-expected second-quarter economic data.
Market focus is now on this month's Politburo meeting, which is likely to shape economic policy for the rest of the year, traders and analysts said.
Growing expectations of macroeconomic policy stimulus drove prices of major steel products higher, Mysteel Global said in a note. Improved margins on steel sales also prompted steel mills to increase their blast furnace operations, with the average blast furnace capacity utilisation rate rising by 0.99 percentage points week-on-week during July 11-17, Mysteel said in a separate note.
According to analysts, hot metal output, an indicator of iron ore demand, remained high. Steel exports remained high overall, broker Everbright Futures said in a note.
Elsewhere, iron ore shipments from top producers Australia and Brazil have increased slightly, said broker Hexun Futures. Other steelmaking ingredients on the DCE surged, with coking coal and coke up 4.18% and 2.95%, respectively. Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar and wire rod rose around 2% each, hot-rolled coil climbed 2.26%, and stainless steel edged up 1.45%.
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