Iron ore futures surged on Tuesday, buoyed by expectations of stronger economic stimulus from Beijing.
The Chinese Politburo announced plans for looser monetary policies and proactive fiscal measures to spur economic growth. Analysts liken these measures to significant stimulus efforts last seen during the 2010 financial crisis. The announcement precedes the Central Economic Work Conference, where key economic targets and policies for the upcoming year will be finalized.
However, the outlook remains clouded by rising port-side iron ore inventories, winter environmental curbs, and the seasonal slowdown in steel demand.
On the Dalian Commodity Exchange, iron ore futures rose 1.87pct to 817 yuan (USD 112.4) per ton. Coke and coking coal futures also saw gains, climbing 3.1pct and 0.74pct to 1,860.5 yuan (USD 256) and 1,160 yuan (USD 160) per ton, respectively.
Similarly, steel futures on the Shanghai Futures Exchange posted increases. Rebar futures grew 2.5pct to 3,402 yuan (USD 468) per ton, while HRC futures advanced 1.89pct to 3,549 yuan (USD 488) per ton. Wire rod futures gained 2.2pct to 3,582 yuan (USD 493) per ton, and stainless steel futures edged up 0.74pct to 13,040 yuan (USD 1,794) per ton.
1 USD / 7.26 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,582 |
2.20 |
1.95 |
| HRC | 3,549 |
1.89 |
2.62 |
| Rebar | 3,402 |
2.50 |
3.97 |
| Stainless Steel | 13,040 |
0.69 |
0.88 |
| Iron Ore | 817 |
1.87 |
1.04 |
| Coke | 1,860.5 |
3.10 |
3.22 |
| Coking Coal | 1,160 |
0.74 |
0.91 |
