China’s iron ore and steel futures rose on Thursday after the country’s central bank said it would take monetary policy measures to help companies hit by the Covid-19 outbreak and support a recovery in the economy. consumption.
Coming back from a five-day break from the Labor Day holiday, traders were also optimistic that replenishment demand would remain strong for the steel ingredient in the world’s biggest steel producer.
The most-traded iron ore contract for September on China’s Dalian Commodities Exchange ended day trading up 1.9% at 871.50 yuan ($131.74) a tonne.
The contract touched 881.50 yuan at the start of the session, the highest level since April 25.
The People’s Bank of China pledged last Wednesday to “waste no time planning incremental policy tools to support stable economic growth, stabilize employment and prices to provide a fair monetary and financial environment.”
The remarks, without details, came after a Communist Party decision-making body last week pledged to support the economy.
Such pledges can work well to bolster confidence, but analysts say any market gains may not be sustainable in the absence of clear plans.
Implementing additional stimulus measures has become more urgent amid China’s tough Covid-19 restrictions, analysts said.
Steel rebar on the Shanghai Futures Exchange rose 1.2%, while hot-rolled coil gained 1.3% and stainless steel rose 1.5%.
Dalian metallurgical coal fell 0.2%, while coke advanced 0.6%.
Source: CNN Brasil
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