Iron ore futures rose on Monday as disappointing economic data fueled hopes for additional stimulus measures from a key meeting this week.
China’s economy grew 4.7pct YoY in the second quarter, according to official data, significantly weaker than the 5.1pct expected by financial markets. Growth also slowed from the 5.3pct expansion in the previous quarter.
The world’s second-largest economy has been grappling with weak consumer demand and a prolonged property slowdown, prompting increased intervention from policymakers in recent months to boost confidence.
The Chinese government began a four-day meeting on Monday, expected to outline a strategy for self-sufficient economic growth. Markets are watching to see if the government announces any stimulus measures to counter the prolonged economic slowdown.
On the Dalian Commodity Exchange, iron ore futures for September delivery increased by 1.03pct to 834 yuan (USD 114.9) per ton. Dalian coke and coking coal futures also rose by 2.3pct and 0.93pct, respectively, to 2,290 yuan (USD 316) and 1,580.5 yuan (USD 218) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures grew by 0.91pct to 3,551 yuan (USD 490) per ton. HRC futures increased by 0.81pct to 3,734 yuan (USD 515) per ton. Wire rod futures decreased by 0.35pct to 3,685 yuan (USD 508) per ton. Stainless steel futures rose by 0.36pct to 13,925 yuan (USD 1,920) per ton.
1 USD / 7.25 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,685 |
-0.35 |
0.08 |
| HRC | 3,734 |
0.81 |
0.67 |
| Rebar | 3,551 |
0.91 |
0.79 |
| Stainless Steel | 13,925 |
0.36 |
0.14 |
| Iron Ore | 834 |
1.03 |
0.84 |
| Coke | 2,290 |
2.30 |
2.01 |
| Coking Coal | 1,580.5 |
0.93 |
0.60 |
