Iron ore futures jumped near their highest levels in 10 months, as traders focused on China's steel production outlook over the next year.
The price of the raw material used in the steel industry approached $140 per ton, hovering around the highest levels it reached during the day since late February. Crude futures have also risen nearly 40% since early August, and Chinese steel production appears poised for its first annual increase in three years.
On the other hand, supplies are expected to decline in the last quarter of the year, and traders are monitoring signs of the increased efforts that the Chinese authorities are expected to make to avoid a collapse in the real estate market.
The price of iron ore rose 0.5% to $139.15 per ton at 10:37 am Singapore time. Futures contracts on the Dalian Stock Exchange rose 0.8%, and steel futures rose in Shanghai. Base metal prices increased on the Shanghai Stock Exchange.
