Dalian iron ore futures advanced amid optimism over the country’s factory outlook after a gauge of the manufacturing sector jumped unexpectedly in November.
The official manufacturing Purchasing Managers’ Index rose to 50.2, according to data released by the National Bureau of Statistics on Saturday, signalling a recovery in activity amid government support and a stabilizing global economy.
Still, this was tempered somewhat by Chinese central bank governor Yi Gang’s cautious on the global economy’s health and signal that monetary policy makers will continue to refrain from large-scale easing steps in an article published Sunday on the Qiushi, the Communist Party’s flagship magazine.
Coming into the 7 am London open DCE pushed to a high 655 RMB and SGX Jan was up above $86, a nice $3 move higher from Friday’s closing levels. Dec trading $87.70, Jan $86.00 Dec/Jan at 1.70. Time spreads are better bid with the push up, Q1/Q4 trading $9.00, Q1/Q2 3.95 (traded 3.80 Friday) and Dec/Q2 7.05. As the morning pushed on, Dec traded 88.00 and Feb paid $85.00.