Prices of the steelmaking material have rallied about 8% this week, reflecting optimism for infrastructure demand amid a seasonal pick up in construction that usually lasts until the end of October. Fresh positive signs include data showing new home prices in August rose in 17 cities, while China’s central bank injected cash into markets for the 10th consecutive month and cut lenders’ reserve requirements for the second time this year.
Output of steel products ramped up 11% in August compared to a year earlier, signaling robust demand for iron ore. Iron ore jumped 1.7% to $122.70 a ton in Singapore at 2:35 p.m. local time after touching $123.10 earlier, the highest since April 3. Futures in Dalian climbed 1.3%, while rebar and hot-rolled coil rose in Shanghai.