Iron ore climbed the most in seven months, trimming a quarterly drop, on speculation that China may speed up construction projects and take measures to counter slowing economic growth in the world’s largest buyer.
Iron ore is poised to decline through the end of March as China, the world’s largest user, has a week-long holiday next month and mills buy more domestic supplies, Australia & New Zealand Banking Group Ltd. said.
West Texas Intermediate crude rose for a second day following speculation a U.S. government report will show distillate inventories fell amid colder weather in the country, the world’s biggest oil consumer.
Iron ore will probably fall in the next two months as prices near the highest level since October 2011 discourage buyers in China, the world’s largest importer, according to Australia & New Zealand Banking Group Ltd.
Thermal coal may outpace oil and gas this year, rising more than 30 percent to a record, as demand from China and India accelerates and Japan boosts imports to make up for nuclear power lost after the March earthquake.