CHINESE iron ore futures advanced on the last trading day of 2020 to log a 54 percent jump last year, their second straight annual gain, supported by supply concerns and China’s robust steel demand despite the coronavirus pandemic-led disruption.

“Impact from the pandemic [on iron ore] was not as pessimistic as market expected,” said Zhuo Guiqiu, analyst with Jinrui Capital. “The big jump came after Vale lowered its shipments expectations and a robust Chinese steel demand in the fourth quarter.”

The most actively traded iron ore futures on the Dalian Commodity Exchange, for May delivery, closed 2.1 percent at 996 yuan (US$152.45) a ton Thursday.

The recent surge was beyond market expectations and iron ore prices this year would be decided more by the demand side, Zhuo added.

Dalian iron ore prices soared 23 percent in the fourth quarter. Steel futures on the Shanghai Futures Exchange also gained in 2020.

Construction steel rebar ended up 3.3 percent at 4,388 yuan a ton Thursday, gaining 23 percent for the year due to the country’s infrastructure push.

Hot rolled coil, used in the manufacturing sector, closed 3.3 percent higher at 4,554 yuan a ton. It gained 26.8 percent last year. (SD-Agencies)