Iron ore futures surged on Wednesday, driven by positive market sentiment following several supportive property-related measures. According to the National Financial Regulatory Administration (NFRA), China’s commercial banks have approved 5,392 real estate “white list” projects, securing nearly 1.4 trillion yuan (USD 196.2 bln) in financing.
Additionally, China is considering allowing local governments to buy unsold homes using special bonds, which are currently limited to infrastructure and environmental projects.
The futures markets also found support on expectations of improved demand as better weather conditions approach.
On the Dalian Commodity Exchange, the most-traded iron ore futures contract rose by 4.58pct to 742 yuan (USD 104) per ton. Coke and coking coal futures increased by 3.47pct and 3.43pct, respectively, reaching 1,921 yuan (USD 269) per ton and 1,372.5 yuan (USD 193) per ton.
On the Shanghai Futures Exchange, rebar futures gained 2.5pct to 3,235 yuan (USD 454) per ton, HRC futures rose by 3.79pct to 3,312 yuan (USD 465) per ton, and wire rod futures increased by 1.76pct to 3,245 yuan (USD 455) per ton. Stainless steel futures also edged up by 0.88pct to 13,825 yuan (USD 1,939) per ton.
1 USD / 7.12 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,245 |
1.76 |
2.13 |
| HRC | 3,312 |
3.79 |
2.87 |
| Rebar | 3,235 |
2.50 |
1.95 |
| Stainless Steel | 13,825 |
0.88 |
1.23 |
| Iron Ore | 742 |
4.58 |
4.25 |
| Coke | 1,921 |
3.47 |
3.05 |
| Coking Coal | 1,372.5 |
3.43 |
3.32 |
