Iron ore futures in China rebounded after the government issued bonds to boost economic growth.
The most-traded September iron ore contract on the Dalian Commodity Exchange (DCE) rose 2.42% to settle at USD 122.75 per metric tonne. Coking coal DJMcv1 and coke DCJcv1 fell by 1% and 0.79%, respectively.
On the Singapore Exchange, the June iron ore benchmark rose by 1.25% to trade at USD 117.25 per metric tonne.
Chinese banks lent 730 billion yuan in new yuan loans in April, down from March, failing to meet market experts' forecasts, according to data released by the central bank on Saturday.
Market experts state that demand is increasing and therefore hot metal production is also mobilised. Looking at iron ore stocks, ore stocks on the port side are still at a high level and this may have an impact on prices in the coming days.
On the Shanghai Futures Exchange, rebar SRBcv1 rose 0.93% and hot rolled coil SHHCcv1 rose 0.61%, while stainless steel SHSScv1 was flat and wire rod SWRcv1 fell 0.13%.
The China Steel Association on Friday called on steelmakers to reduce their high inventories as the steel industry is struggling with oversupply.
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