China’s iron ore and steel futures rose Wednesday on optimism that a rise in Covid-19 infections would require more stimulus measures from the Chinese government to prop up the world’s second-largest economy.
China, the world’s largest steelmaker, is likely to plan more stimulus measures to support growth next year amid disruptions caused by the easing of Covid restrictions, Reuters reported, citing experts and analysts.
May’s top-traded iron ore on China’s Dalian Commodity Exchange finished the day trading up 1.3% at RMB 808.50 ($116.19) a ton.
The round on the Shanghai Futures Exchange rose 1.4% to RMB 3,986 a ton.
Recently, iron ore prices hit six-month highs as Beijing moved away from its zero-Covid policy and local measures to support struggling property developers brightened the outlook for China’s economy.
“We believe more accommodative policies towards Covid and the housing markets will lead to stability in iron ore demand,” Jefferies analysts said in a Dec. 13 note.
However, China is facing a “very difficult” time amid fears of a surge in infections, the World Health Organization said. Singapore iron ore benchmark for January fell 0.2% to $108.65 a tonne.
“The virus is spreading rapidly in homes and offices and starting to put pressure on the hospital system. This could further weigh on industrial and consumer businesses in the near term,” commodity strategists ANZ said in a statement.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
