Nov 4 (Reuters) - Iron ore futures surged on Friday,
solidifying their weekly gains, driven by continuing bets that top steel
producer China would ease its strict COVID-19 rules early next year, and further
fuelled by Beijing's fresh pro-growth rhetoric.
The most-traded January iron ore on China's Dalian Commodity
Exchange DCIOcv1 ended
daytime trade 4.9% higher at 662.50 yuan ($91.35) a tonne, on track for its
first weekly rise in four weeks.
Dalian iron ore suffered its steepest monthly fall in 22 months
in October due mainly to a gloomy outlook for Chinese demand for the
steelmaking ingredient.
On the Singapore Exchange, benchmark December iron ore was up
5.5% at $86.20 a tonne, as of 0722 GMT.
The market reversal this week comes despite China's National Health Commission
saying on Wednesday the nation should unwaveringly stick to the zero-COVID
policy, and authorities earlier denying knowledge of a rumoured committee being
formed supposedly to assess border reopening in March.
Citing unnamed sources, Bloomberg reported China was working on
plans to scrap a system that penalizes airlines for bringing virus cases into
the country, a sign authorities are looking for ways to ease strict rules.
"The rumours of China exiting COVID-zero strategy in the
first quarter of 2023 are picking up momentum, despite the government refuting
them," said Navigate Commodities Managing Director Atilla Widnell.
Also, this week Chinese regulators declared that economic
development remained a priority, seeking to allay foreign investors' fears that
ideology could take precedence as President Xi Jinping extends his term and has
taken tight control of the new Politburo Standing Committee.
Steel futures and other Dalian steelmaking inputs also extended
their rally, with coking coal DJMcv1 and coke DCJcv1 up 5.3% and 3.8%, respectively.
On the Shanghai Futures Exchange, rebar SRBcv1 and
hot-rolled coil SHHCcv1 both
climbed 2%, wire rod SWRcv1 gained
1.9%, and stainless steel SHSScv1 advanced 0.8%.
(Reporting by Enrico Dela Cruz in Manila; Editing by Rashmi Aich)
((enrico.delacruz@thomsonreuters.com))
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