Dalian and Singapore iron ore futures rose on Monday after China cut benchmark loan rates to support its economy. However, the price increase is expected to be short-lived as the demand outlook remains pessimistic.
China slashed its benchmark loan rate and mortgage reference by a larger margin, in addition to last week's easing measures, as it tries to revive an economy hampered by the real estate crisis and resurgence of COVID-19 cases.
The top-traded September contract on the Singapore Exchange rose 2.3% to $103.10 per ton at 0437 GMT. The top-traded January iron ore on the Dalian Commodity Exchange rose 2.6 percent to 698 yuan ($102.26) before trading 2.1% higher during the Asian lunch break, with demand outlook bleak.
While record temperatures continue in China, it also destroys the demand for construction steel.
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