Dalian iron ore futures prices extended gains into a second consecutive session on Wednesday, helped by renewed hopes of demand recovery in top buyer China following an improving steel market, although persistent worries about its embattled property market capped gains.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) DCIOcv1 ended morning trade 1.14% higher at 889.5 yuan ($123.56) a metric ton.
“Expectations of stronger construction activity grew. Domestic construction sites have reopened following the Lunar New Year holiday and are looking to take advantage of the better margins following iron ore’s recent decline,” analysts at ANZ bank said in a note.
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.