Iron ore prices in China have strengthened on claims that the government will increase incentives. On the Dalian Commodity Exchange (DCE), the most traded September iron ore contract DCIOcv1 rose 0.8% to 113.9 USD. In addition, coke DJMcv1 and coke DCJcv1 rose by 1.1% and 0.5%, respectively.
On the Singapore Exchange, August iron ore SZZFQ4 rose 2.5% to 107.9 per tonne.
Prices were also mixed on the Shanghai Futures Exchange. Rebar SRBcv1 rose 0.6%, wire rod SWRcv1 0.8% and hot rolled coil SHHCcv1 0.2%, while stainless steel SHSScv1 fell about 0.8%.
The reasons for the shortages in iron ore were cited as producer losses, rising inventories and lower production.
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