Aluminum price to average 6% higher in 2024 on strong demand: Fitch
Analysts also raised its 2024 aluminum price forecast from $2,400/tonne to $2,450/tonne to reflect these expectations.
Iron ore futures rose on Tuesday, driven by hopes of economic stimulus measures aimed at bolstering the Chinese economy and anticipation of robust demand.
The most-traded May iron ore on China’s Dalian Commodity Exchange rose 1.3% after a brief dip in the previous session, to 980.5 yuan ($137.22) per metric ton at closing.
On the Singapore Exchange, the benchmark January iron ore was up 1.2% at $138.7 a metric ton, rallying for the third consecutive session.
China’s top planning body said on Saturday it had identified a second batch of public investment projects under a bond issuance and investment plan announced in October to boost the economy.
Five of China’s largest state banks lowered interest rates on some deposits on Friday, offering the prospect of reduced lending costs at a time when the government is urging banks to support the economy.
In addition, analysts expect a probable surge in demand for iron ore in the following weeks as Chinese steelmakers replenish raw materials to maintain production needs over the Lunar New Year holiday break.
Meanwhile, a few cities in northern China, including the steel production hub Tangshan, have announced plans to initiate emergency responses, citing worsening air pollution.
Local steelmakers are typically required to curb production in such situations, weighing on demand for steelmaking raw materials and supporting prices of steel products.
Steel benchmarks on the Shanghai Futures Exchange were mixed. The most-active rebar contract strengthened 0.7%, hot-rolled coil rose 0.3%. Meanwhile, wire rod decreased 0.6%, and stainless steel lost 0.5%.
Other steelmaking ingredients Dalian coking coal and coke inched down 0.8% and 1.3%, respectively.
($1 = 7.1454 yuan)
(By Ashley Fang; Editing by Mrigank Dhaniwala)
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