Iron Ore Price, page-74

Commodities including iron ore, oil and copper are set to extend gains on Monday as China's interest rate reduction spurs demand from the construction to energy industries.
China's second cut to benchmark rates in three months will fuel gains as investors anticipate that cheaper credit will stimulate demand, Eugen Weinberg, head of commodity research at Commerzbank, said. A Chinese factory gauge reported on Sunday signaled contraction in February.
"The market was looking for some time for more easing in China on a back of economy weakness," Weinberg said. "In a short term, the hopes for more monetary easing and additional stimulus are likely to support the prices."
The Bloomberg Commodity Index of 22 raw materials climbed 0.7 percent last week, capping the first monthly advance since June. Iron ore gained climbed 0.3 percent on Feb. 27, copper rose 0.1 percent and Brent crude rallied 4.2 percent.

China is the biggest buyer of copper and iron ore and is the largest consumer of energy. Copper has declined 15 percent this year on speculation China's property slump will curb demand from the construction industry. "In a longer term, the slowdown in construction sector especially is likely to weigh on commodity prices," Weinberg said.
Iron ore dropped 12 percent in 2015 as surging supplies outpaced demand growth in China. Brent oil advanced 9.2 percent. Demand is growing and markets are "calm," Saudi Arabian Oil Minister Ali Al-Naimi said Feb. 25.
Refinery demand and supply disruptions in Libya and Iraq have boosted Brent, Ole Hansen, a strategist at Saxo Bank A/S in Copenhagen, said in an e-mailed report Sunday. The return of traders in China following the weeklong Lunar New Year break is helping copper and gold to advance, he said. Gold rose 0.3 percent on Friday to $1,213.18 an ounce, the third consecutive advance and extending this year's climb to 2.4 percent.

Read more: http://www.smh.com.au/business/mark...urs-demand-20150302-13s82s.html#ixzz3TAyNkkfQ