China ferrous futures jump as government vows to stabilise economy

BEIJING, Dec 13 (Reuters) - Chinese ferrous futures closed higher on Monday, with the benchmark iron ore contract rising nearly 6% at one point after two sessions of losses, as a pledge by the government to focus on economic stability next year bolstered demand outlook.

China pledged to continue its prudent monetary policy and proactive fiscal policy, and to prioritise economic stability in 2022, according to the annual Central Economic Work Conference last week. read more

"The supply-side of iron ore is not expected to see a big change next year, with shipments from mainstream miners to remain stable while output from domestic mines will see little change," said Cheng Peng, an analyst with SinoSteel Futures.

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"The main factor to affect iron ore prices will be demand, which is more flexible pending the property market policy."

Benchmark iron ore futures on the Dalian Commodity Exchange , for May delivery, closed 5% higher at 669 yuan a tonne after rising as much as 5.9% to 674 yuan ($105.93).

Spot prices of iron ore, with 62% iron content for delivery to China, dipped $1 to $108 per tonne on Friday, according to SteelHome consultancy.

Other steelmaking ingredients also increased. Dalian coking coal futures ended up 1.7% at 2,035 yuan ($319.84) per tonne, bouncing back from a 5.9% decline earlier in the session.

Coke prices on the Dalian bourse increased 1.9% to 2,972 yuan per tonne.

Construction-used steel rebar on the Shanghai Futures Exchange rose 2.5% to 4,415 yuan a tonne and hot rolled coils , used in cars and home appliances, advanced 2.2% to 4,535 yuan per tonne.

Most-traded Shanghai stainless steel futures , for January delivery, jumped 1.8% to 16,160 yuan a tonne at close.

($1 = 6.3625 yuan)

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Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Rashmi Aich and Subhranshu Sahu

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