Iron ore futures experienced a recovery on Tuesday, buoyed by market optimism regarding potential stimulus measures from the Chinese government to revitalize the sluggish economy.
China’s economic recovery showed signs of waning momentum in the second quarter of 2023, prompting calls for urgent stimulus measures from Beijing.
On Tuesday, China’s leading economic regulator announced its plans to implement policies aimed at rejuvenating and expanding consumption, with the goal of revitalizing domestic demand.
The country’s gross domestic product (GDP) only grew by 0.8 pct from April to June, a substantial slowdown compared to the 2.2 pct growth witnessed in the first quarter. Property investment also dropped by nearly 8 pct in the first half of the year. As a result, market anticipates more robust stimulus measures to be announced to bolster the post-pandemic economic recovery.
At the Dalian Commodity Exchange, iron ore futures for the September contract rose by 0.66 pct, concluding at 845 yuan (USD 117.8). Meanwhile, Dalian coke and coking coal futures experienced significant increases of 2.51 pct and 4.65 pct, respectively, with morning trades settling at 2,245.5 yuan (USD 313) per ton and 1,474.5 yuan (USD 206) per ton.
Steel futures also saw gains, with rebar futures rising by 0.62 pct to 3,749 yuan (USD 523) per ton, HRC futures increasing by 0.73 pct to 3,850 yuan (USD 537) per ton, wire rod futures edging up by 0.12 pct to 4,080 yuan (USD 569) per ton, and stainless steel futures climbing by 0.74 pct to 14,975 yuan (USD 2,089) per ton.
1 USD / 7.16 yuan
