Iron ore futures extend rally on China property sector support measures

Dalian iron ore futures rose on Friday, extending a rally on recently unveiled support measures for China's property sector, although the main contract is headed for a weekly loss as record-high COVID-19 cases in the top steelmaker hurt sentiment.

The most-traded January iron ore on China's Dalian Commodity Exchange TIO1! ended day-time trade 3.3% higher at 758.0 yuan ($105.84) a tonne, its highest since Aug. 1.

On the Singapore Exchange, the benchmark December iron ore (SZZFZ2) was up 3.0% at $98.60 a tonne as of 0710 GMT.

Iron ore extended recent gains following recent measures to support China's property sector while China's State Council said that monetary tools such as cutting banks' reserve-requirement ration will be used to maintain liquidity, ANZ Research said in a note.

China's biggest commercial banks have pledged at least $162 billion in fresh credit to property developers, bolstering recent regulatory measures to ease a stifling cash crunch in the sector and triggering a rally in property shares.

China on Friday reported another record high of daily COVID-19 infections, as cities across the country enforce measures and curbs to control outbreaks.

Mainland China's Health Commission reported 32,943 new coronavirus cases for Nov. 24, compared with 31,656 new cases a day earlier.

U.S. long-term Treasury yields sank to a more than seven-week trough on Friday while the dollar dropped back toward recent lows against major peers as markets continued to digest dovish signals from the Federal Reserve.

The most-active rebar contract on the Shanghai Futures Exchange RBF1! rose 0.7%, hot-rolled coil EHR1! rose 0.8%, stainless steel HRC1! rose 0.4%, meanwhile wire rod (SWRcv1) fell 0.5%,

Nippon Steel Corp 5401, the world's No.4 steelmaker, is looking to buy more stakes in coking coal mines to secure a stable supply of the key steel-making ingredient, its executive said.

Dalian coking coal NYMEX:ACT1! and coke (DCJcv1) gained 2.1% and 1.9% respectively.

($1 = 7.1616 yuan)