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Dalian iron ore hits 3-week top, tracks firmer equities
December 8, 2014 / 3:52 AM / 3 years ago

Dalian iron ore hits 3-week top, tracks firmer equities

* China exports rise less than forecast, imports fall
    * Shanghai rebar gains, hopes of more stimulus
    * China iron ore imports fall in Nov from Oct

    By Manolo Serapio Jr
    SINGAPORE, Dec 8 (Reuters) - Dalian iron ore futures rose to
their highest in nearly three weeks on Monday and Shanghai rebar
also advanced, both tracking strong gains in equities despite
weaker Chinese trade data.
    Expectations that China will roll out more stimulus measures
to aid a slowing economy stretched the rally in share prices.
Mainland indexes ended last week with their best performance in
more than five years. 
    China's exports rose well below forecast in November and
imports shrank in another sign that the world's second-largest
economy could be facing a sharper slowdown. 
    "More and more money is flowing into the stock market and
rebar and iron ore are following through," said Cao Bo, analyst
at Jinrui Futures in Shenzhen.
    Iron ore for May delivery on the Dalian Commodity Exchange
 was up 1 percent at 493 yuan ($80) a tonne by 0321 GMT
after hitting a session high of 497 yuan.
    The May rebar contract on the Shanghai Futures Exchange
 gained 0.4 percent to 2,571 yuan a tonne, after rising
more than 1 percent earlier.
    Hopes that China will keep infrastructure investment high
into next year are also supporting prices, said Cao, boding well
for steel and iron ore which have taken a hit this year from
excess supplies.
    China's central bank unexpectedly cut interest rates on Nov.
21 for the first time in more than two years to shore up
flagging growth, and economists expect more measures will be
implemented including further rate cuts and reductions in banks'
reserve requirement ratios.
    Spot iron ore prices have fallen more than 47 percent this
year as large, low-cost miners such as Vale, Rio
Tinto and BHP Billiton boosted output amid
slowing demand growth in top buyer China.
    China imported 67.4 million tonnes of iron ore in November,
down 15.1 percent from the previous month, data from China's
customs authority showed. 
    Iron ore for immediate delivery to China's Tianjin port
.IO62-CNI=SI slipped 0.3 percent to $70.90 a tonne on Friday,
according to The Steel Index. The price fell to $68 on Nov. 26,
the lowest since June 2009.
    
  Rebar and iron ore prices at 0321 GMT
                                                                                          
  Contract                          Last    Change   Pct Change
  SHFE REBAR MAY5                   2571     +9.00        +0.35
  DALIAN IRON ORE DCE DCIO MAY5      493     +5.00        +1.02
  SGX IRON ORE FUTURES JAN         70.98     +0.40        +0.57
  THE STEEL INDEX 62 PCT INDEX      70.9     -0.20        -0.28
  METAL BULLETIN INDEX             71.77     +0.52        +0.73
                                                                                          
                                                                                          
  Dalian iron ore and Shanghai rebar in yuan/tonne
  Index in dollars/tonne, show close for the previous trading day
 ($1 = 6.1539 Chinese yuan renminbi)

 (Editing by Sunil Nair)

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