China’s iron ore and steel futures posted gains on Tuesday following a meeting led by President Xi Jinping, during which the country’s leaders pledged to introduce new measures to bolster the faltering economy.
The Politburo, Beijing’s top decision-making body, announced that it would launch a precision-focused stimulus package aimed at boosting demand. The statement emphasized the need to enhance consumption of major items, including automobiles, electronic products, and household items.
Although the specifics of the stimulus package were not mentioned, the mere hint of economic support buoyed the iron ore and steel futures markets.
Last week, China’s state planner had introduced measures to support private investment and revitalize underdeveloped areas in megacities.
Despite the gains, iron ore demand outlook remained shaky as government aims to capped production level on same level as 2022.
Dalian iron ore futures for the September contract rose by 1.36pct to 856.5 yuan (USD 119) per ton. Coke futures increased by 1.08pct to 2,289 yuan (USD 318) per ton, while coking coal futures saw a slight uptick to 1,484 yuan (USD 206) per ton.
Steel futures also extended their gains, with rebar futures rising by 1.21pct to 3,857 yuan (USD 536) per ton and HRC futures surging by 2.19pct to 4,017 yuan (USD 559) per ton. Wire rod futures recorded a 0.57pct increase, settling at 4,210 yuan (USD 585) per ton. Additionally, stainless steel futures saw growth of 0.32pct to 15,505 yuan (USD 2,156) per ton.
1 USD / 7.19 yuan
