Iron ore futures improved thanks to back-to-back incentives from China's property sector.
Positive developments in China's property sector continue to come one after another. Chinese local governments' announcements that they will sell unsold houses encourage commercial home purchases.
In addition, the Beijing government removed the floor on mortgage rates as its most valid move so far and encouraged local governments to buy houses and turn them into affordable housing.
The speech by Vice Premier He Lifeng, in which comprehensive incentive packages were announced, did not specify a specific timeframe or pricing for purchases.
Chinese local governments aim to minimise the stock of unsellable apartments in the country with the comprehensive incentive packages announced.
The most-traded September iron ore contract on the Dalian Commodity Exchange (DCE) rose 2.56% to settle at USD 122.09 per metric tonne. Coking coal DJMcv1 rose 3.33% and coke DCJcv1 rose 2.31%.
On the Singapore Exchange, the June iron ore benchmark rose 2.46% to USD 116.5 per metric tonne.
Rebar SRBcv1, hot rolled coil SHHCcv1 and wire rod SWRcv1 on the Shanghai Futures Exchange rose 2.38%, 1.86% and 1.04%, respectively.
According to market analysts, stocks of steel products will be depleted sooner than expected this week thanks to government incentives.
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