On Wednesday, Dalian iron ore futures continued their upward trajectory, driven by market optimism surrounding potential stimulus measures following the recent interest rate cut by the People’s Bank of China (PBOC).
The PBOC’s decision to reduce the seven-day reverse repurchase rate by 10 basis points, from 2pct to 1.9pct, aims to bolster the domestic money supply and stimulate spending.
Supporting the iron ore gains was the increase in steel output at major member firms of the China Iron and Steel Association (CISA) in early June. According to CISA data, daily crude steel production reached 2.23 mln tons during June 1-10, representing a 6.48pct rise compared to the previous ten days.
Reflecting these positive market developments, the September contract for iron ore on the Dalian Commodity Exchange rose by 1.51pct, reaching 804.5 yuan (USD 112.3) per ton. Additionally, coke and coking coal futures also experienced notable gains, with prices increasing by 2.86pct and 2.77pct respectively, reaching 2,125 yuan (USD 297) per ton and 1,337 yuan (USD 187) per ton.
In line with the upward trend, rebar futures climbed by 1.08pct to 3,739 yuan (USD 522) per ton, while HRC futures rose by 1pct to 3,847 yuan (USD 537) per ton. Wire rod futures also saw growth, increasing by 1.19pct to 4,248 yuan (USD 593) per ton. Furthermore, stainless steel futures advanced by 1.22pct, reaching 15,315 yuan (USD 2,139) per ton.
1 USD / 7.15 yuan
