Iron ore prices increased due to China's economic stimulus packages and stock increases before the upcoming Chinese New Year holiday. Steel producers increased raw material stocks to meet production needs before the holiday, while investors turned to the market with expectations of incentives for China's efforts to stimulate the economy.
Iron ore futures for May on the Dalian Commodity Exchange increased 0.97% to 784.5 yuan/ton (USD 107.48). January futures on the Singapore Exchange increased by 0.6% to USD 101.7/ton. This increase was shaped by confidence in China's stimulus policies, as well as the impact of steel mills' pre-holiday stocking activities.
China's efforts to stabilise the real estate sector strengthened the expectations of economic stimulus that will last until 2025, which had a positive impact on the steel sector. Rebar, hot rolled coil, wire rod and stainless steel prices increased on the Shanghai Futures Exchange. These developments point to strong demand and stable market conditions. China's stimulus policies continue to affect global raw material markets as well as local industries.
Comments
No comment yet.