Chinese Prime Minister Li Qiang's statement that China's second quarter economic growth will be higher than the growth in the first quarter and his message of more stimulus also mobilised the commodity market.
Speaking at the World Economic Forum, Li said that more pragmatic, effective measures will be taken to support domestic demand. After the statement, iron ore increased close to 3 per cent.
Industrial metals rallied at the beginning of the year as the Chinese economy reopened after the pandemic, but the rally stalled this quarter with problems in the manufacturing and real estate sectors in the country. Although the Chinese Central Bank cut interest rates this month to stimulate the economy, investors expect more steps to be taken.
On the London Metal Exchange, copper increased 0.6 percent to trade at $ 8,438.50 per tonne, while aluminium, zinc and nickel increased more than 1 percent.
In Singapore, iron ore increased 2.9 percent to trade at $ 112.25 per tonne.
Navigate Commodities Manager Atilla Widnell stated that there was an increase in expectations of more incentives, "Excessive optimism towards China can cause upward price shocks. This increase may also create a selling opportunity," he said.
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