China's iron ore futures rose last Friday after positive news from the Chinese real estate sector. However, market participants are still worried about the overall demand for this raw material from the world's largest steelmaker.
It is reported that China Evergrande Group is continuing 63 construction projects. In addition, Country Garden Services Holding raised approximately US$1 billion from the share sale. These are good news since previous concerns over massive debt problems by Chinese property developers, which contribute about a quarter of domestic steel demand.
China was also planning to cut its steel production this year, and this was expected to continue until the Winter Olympics in Beijing in February.
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