BEIJING (Reuters) - Iron ore futures prices rallied on Monday to their highest in nearly two weeks, supported by a weaker dollar and prospects of higher steel demand in the upcoming peak construction season in China, the mineral’s biggest consumer market. The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended trading 3.45 percent higher at 750.5 yuan ($105.40) a tonne, hitting its highest since Aug. 13. Benchmark September iron ore on the Singapore Exchange rose 4.4 percent to $100.3 a tonne, also marking its highest since Aug. 13. The dollar hovered near an eight-month low after dovish comments on Friday by U.S. Federal Reserve Chairman Jerome Powell reinforced expectations for a September interest rate cut. A weaker dollar makes dollar-priced commodities less expensive for buyers using other currencies.

“The prospect of monetary policy easing has boosted sentiment across the commodity complex,” ANZ analysts said in a note.

A marginal improvement in market fundamentals also supported prices of key steelmaking ingredients, although more equipment maintenance by Chinese steelmakers following a surge in losses remained a drag, the analysts said.

Supply-side pressure eased somewhat on lower domestic output amid falling ore prices, while expectations of improved downstream steel demand next month rose, Sinosteel Futures analysts said in a note.

Other steelmaking ingredients on the Dalian Commodity Exchange posted gains, with coking coal and coke rising 2.52% and 3.41% respectively.

Source: Notícias Agrícolas