BEIJING (Reuters) - Iron ore futures prices rose to their highest levels in nearly two weeks on Friday and were on track to end with a weekly gain, supported by resilient demand and growing expectations of additional stimulus measures in China, the world’s biggest consumer of the ore.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended trading 2.32% higher, hitting a high since March 3 at 794 yuan ($109.79) a tonne, up 2.5% on the week.

Benchmark April iron ore on the Singapore Exchange rose 1.55% to $103.8 a tonne, the highest since Feb. 28. The contract has gained 3.3% so far this week.

China’s central bank said on Thursday it would cut interest rates and banks’ reserve requirement ratio at an appropriate time and maintain ample liquidity, boosting market sentiment.

Prices are also being supported by a continued increase in demand as steel mills ramped up production during the peak construction season in March.

Average daily output of the hot metal, typically used to gauge iron ore demand, rose for a third straight week, up 0.03% from the previous week to 2.31 million tonnes on March 13, according to a survey by consultancy Mysteel.

An escalating global trade war that could dampen demand projections, along with China’s plan to cut crude steel output, continued to pose a headwind, limiting further gains.

Source: Notícias Agrícolas