Seaborne iron ore prices climbed on Friday after China continued to push stimulus to boost growth.

The Kallanish KORE 62% Fe index and KORE 65% Fe index rose $0.26/t and $0.30/t, respectively, to $98.69/dry metric tonne cfr Qingdao and $111.40/dmt cfr. The KORE 58% Fe index was $0.12/t higher at $85.26/dmt cfr.

On the Dalian Commodity Exchange (DCE), the most-traded January 2025 iron ore contract surged CNY 23.5/t ($3.35/t) to CNY 742/t ($105.83/t).

On the Singapore Exchange, October 62% Fe futures and 65% Fe futures settled $3.57/t and $3.80/t higher, respectively, at $102.09/t and $115.09/t. The same contract for 58% Fe futures was up $3.18/t to $89.02/t.

Meanwhile, 6mm+ heavy scrap delivered to mills in the Yangtze River Delta increased to CNY 2,418/t on Friday from CNY 2,387/t on Thursday. Tangshan billet also jumped to CNY 3,050/t from CNY 2,990/t.

The People’s Bank of China on Friday cut the reserve requirement ratio (RRR) by 0.5 percentage points. It also trimmed the seven-day reverse repurchase rate to 1.5% from 1.7%. China’s top leaders also on Thursday's Politburo meeting signalled on more easing measures to boost its ailing economy.

“Driven by the macro stimulus, ferrous products are having strong run in the short term, but the spot market is still cautious,” Huatai Futures says in a recent note. “If demand for steel products doesn’t improve notably, the supply and demand for iron ore will not reach a balance. The downside risk still exists,” it adds.