China’s iron ore futures continued their upward trajectory on Wednesday, driven by expectations of economic stimulus measures from the Chinese government. In response to signs of a cyclical slowdown, the ruling Communist Party’s Politburo signaled its intention to implement further measures aimed at bolstering economic growth. One of the key areas of focus is to support debt-ridden property developers, which play a crucial role in the Chinese economy, by boosting real-estate consumption.
Market anticipates that the government will take steps to ease property market regulations, with the aim of mitigating the downturn in the troubled sector. Just last week, China’s state planner had already introduced measures to support private investment and promote development in underdeveloped regions within major cities.
As a result of these expectations, Dalian iron ore futures for the September contract surged by 1.76pct to reach 866 yuan (USD 121) per ton. Additionally, coke and coking coal futures recorded significant gains, rising by 3.11pct and 3.66pct respectively, to 2,338 yuan (USD 327.5) per ton and 1,530 yuan (USD 214) per ton.
In the Shanghai Futures Exchange, rebar futures experienced a slight increase of 0.34pct to reach 3,851 yuan (USD 540) per ton, while HRC futures surged by 1.53pct to 4,051 yuan (USD 568) per ton. Wire rod futures also saw a 1.28pct increase, settling at 4,270 yuan (USD 598) per ton. On the other hand, stainless steel futures remained unchanged at 15,545 yuan (USD 2,178) per ton.
1 USD / 7.13 yuan
