Iron ore prices are higher in early Asian trade, likely boosted by China's
resilient economic growth in 1Q. China's economy grew 5.0% in 1Q from a year
ago, accelerating from the 4.5% gain in the prior quarter and beating market
expectations of a 4.9% increase. Meanwhile, higher diesel prices due to the
Middle East conflict raise production and transportation costs, boosting iron
ore prices, Galaxy Futures says in a research note. "Unless the U.S.-Iran
conflict escalates to extremes, it is unlikely to reverse the pricing logic of a
loose supply and demand situation," it adds. The most-traded iron-ore contract
on the Dalian Commodity Exchange is 2.2% higher at 776 yuan a ton.
