Iron ore extends rally on support measures for China’s real estate sector

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Dalian iron ore futures rose on Friday (25), extending a rally due to recent support measures revealed for the Chinese real estate sector, although the main product contract is heading for a weekly loss, as the Record cases of Covid-19 in China, the world’s biggest steel producer, hurt sentiment.

The most traded iron ore for January on China’s Dalian Commodity Exchange ended day trade up 3.3% to RMB 758.0 ($105.84) a tonne, the highest since Aug. 1.

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On the Singapore Exchange, the reference iron ore in December rose 3.0% to US$ 98.60 a tonne.

Iron ore added to recent gains following recent measures to support China’s real estate sector, while China’s State Council said monetary tools such as cutting banks’ reserve requirements will be used to maintain liquidity, ANZ Research said. in note.

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China’s biggest commercial banks have pledged at least $162 billion in new loans to real estate developers, bolstering recent regulatory moves to ease the stifling cash crunch in the sector and sparking a rebound in real estate stocks.

China on Friday recorded another record high of daily Covid-19 infections as cities across the country enforce measures and restrictions to control outbreaks.

The Mainland China Health Commission reported 32,943 new cases of the coronavirus on Nov. 24, compared with 31,656 new cases the day before.

Source: CNN Brasil

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