Iron ore in China rises to maximum 5 weeks on demand before holidays

Iron ore futures in the Chinese Dalian stock market rose nearly 4% this Thursday, for five-week maximums, expanding earnings in anticipation of the demand expected by the raw material before holidays in China. The fall in iron ore shipments to China and signs of relief in trade tensions between the United States and China also helped in the rally, compensating rumors on the market for greater production constraints in the Tangshan Steel province. The most traded iron ore contract in the Dalian Stock Exchange, for January 2020, reached up 3.9%, to 681 yuan (96.08 dollars) per tonne, higher level since August 7, before closing in high of 3.7%, to 680 yuan. The financial markets in China will be closed on Friday due to the mid autumn Festival. With this, iron ore closed the second consecutive week of earnings. In addition to the decline in ore arrivals, the purchases of the material should be resumed due to the demand for stock recomposition by steel mills before the National Day holiday, in early October, said Richard Lu, analyst of the CRU metals consultancy in Beijing. The sentiment was also driven by the latest news from the U.S.-China trade war, with U.S. President Donald Trump having praised China's measure of exempting some anti remedies and other products from tariffs. Trump has announced that, "as a gesture of goodwill," will slightly postpone a high rate of billionaires on Chinese products. In steel, the most active contract of the rebar for construction in the Shanghai stock market rose 2.1%, to 3,549 yuan per tonne, higher level since August 5.