Shares of state-run NMDC Ltd. surged as much as 4% on Monday as global Iron Ore prices continued to rally.

This is the eighth straight day of gains for the stock, during which it has risen nearly 15%.

Three of China’s biggest cities have eased home buying curbs, boosting demand outlook in one of the world’s biggest consumer of the steel-making ingredient.

Shanghai, Guangzhou and Shenzhen loosened rules, following through on Beijing’s latest efforts to prop up the embattled property sector. Iron Ore futures surged in Singapore to hit the highest since July, while copper and zinc also rose on the London Metal Exchange.
Global Iron Ore prices have surged 26% from their recent lows of under $90, which they had fallen to last week.

The recent rally in Iron Ore prices will help provide a base to prices domestically. NMDC’s own Iron Ore prices have declined between 17% to 18% since May this year.

Iron Ore is a major part of NMDC’s overall business.

NMDC shares are the top gainers on the Nifty Metal index. The stock is also the top gainer on the Nifty PSE index, which is currently down 1.5%.

Shares of NMDC are currently trading 5% higher at ₹246.89 and are now 15% away from their recent peak. Shares are up 17% so far in 2024 and most of the gains have come from this recent upmove.