News: BHP Iron ore soars past $130 as BHP sees China demand boost

Dalian and Singapore iron ore futures surged past $130 a tonne on Tuesday after the world's largest listed miner, BHP Group (BHP) , said it expects a rebound in the economy of top metals consumer China.

BHP's confidence was buoyed by green shoots since the start of the calendar year, including new loans, house prices and business sentiment surveys, Chief Executive Officer Mike Henry said.

The most-traded May iron ore on China's Dalian Commodity Exchange DCIOcv1 rose as much as 3.4% to 918.50 yuan ($133.83) a tonne, the strongest for the Dalian-traded commodity since July 2021.

On the Singapore Exchange, the steelmaking ingredient's benchmark March contract SZZFH3 surged by more than $11, or about 9%, to $139.80 a tonne, the highest since April last year.

The upbeat mood also boosted prices of other Dalian steelmaking inputs as well as steel benchmarks in Shanghai.

"Fragile shoots of an emerging Chinese steel demand recovery appear to be slowly developing strong roots, as bullish high-frequency data extended into a second consecutive week," Navigate Commodities Managing Director Atilla Widnell said in a note.

"If this trend extends for a third consecutive week – and there's little to suggest otherwise – this should continue to reinforce the renewed optimism around China's reopening narrative."

Rebar SRBcv1 and wire rod SWRcv1 on the Shanghai Futures Exchange SRBcv1 both climbed 1.6%, hot-rolled coil SHHCcv1 gained 1.1% and stainless steel SHSScv1 added 1.5%.

Coking coal DJMcv1 coke DCJcv1 rose 3.2% and 1.9%, respectively.

Iron ore broke past the $120-$130 trading range it had been confined to for weeks, with traders brushing aside a fresh reminder from regulators about the need to ensure stable market operations, and rising portside stockpiles.

"Higher iron ore prices will go hand-in-hand with more active and vocal rhetoric from Chinese authorities pontificating their displeasure at elevated levels," Widnell said.

Imported iron ore stocked at Chinese ports hit a fresh five-month high on Friday, SteelHome consultancy data showed. SH-TOT-IRONINV