Iron ore futures saw a recovery on Friday, driven by better-than-expected inflation data from China, the top consumer of the metal. However, ongoing concerns about demand and high supply kept prices on track for a weekly decline.
On China’s Dalian Commodity Exchange, the most-traded January iron ore contract ended daytime trading slightly higher by 0.27 percent at 741.5 yuan ($103.43) per metric ton, reflecting a weekly decrease of 2.6 percent. Similarly, the benchmark September iron ore on the Singapore Exchange rose by 1.05 percent to $101 a ton, but it remained down by 2.7 percent for the week.
China’s consumer prices increased at a faster pace than expected in July, as official data indicated. This comes as Beijing intensified its support for the struggling consumer sector amid a sluggish economic recovery, though producer price deflation persisted. Additionally, a positive shift in broader financial markets contributed to the rise in commodity markets, according to ANZ analysts.
Alien Metals Ltd (LON:UFO) is a global minerals exploration and development company that will shortly make the transition to iron ore producer. The company was formed from Arian Silver in late 2018, retaining some of the companies more valuable Mexican projects before embarking on an acquisition led strategy, headed up by an excellent geological team and targeted entirely on Western Australia.
