Dalian iron ore futures experienced their strongest performance in two weeks on Thursday, driven by tight inventories and optimistic expectations of robust Chinese demand. The most-traded May iron ore on China's Dalian Commodity Exchange rose 3.5%, closing at 948.5 yuan per metric ton. Meanwhile, the benchmark January iron ore on the Singapore Exchange was up 2.3% at $133.91 per metric ton, ending a three-day losing streak. Lower output from various steel mills, prompted by falling profit margins and rising raw material costs, contributed to the rebound in iron ore prices. Analysts anticipate a temporary rise in demand in China as mills seek to replenish raw materials, ensuring sustained production during the upcoming Lunar New Year holiday break in February. The positive sentiment was further supported by news of Chinese property developer Longfor Group paying a loan to a creditor in advance. Steel benchmarks on the Shanghai Futures Exchange showed mixed results, with rebar and hot-rolled coil strengthening, while wire rod experienced a slight decline. Other steelmaking ingredients, including Dalian coking coal and coke, also saw gains.

SOURCE:GOOGLE