Iron ore futures rose on Tuesday (29), with the reference on the Dalian stock exchange reaching its highest level in 23 weeks, supported by measures by China, the world’s largest steel producer, to intensify support for developers troubled real estate.
China’s securities regulator will allow Chinese developers listed in China and Hong Kong to sell additional shares to acquire real estate assets, replenish working capital or pay down debt, lifting the ban on such refinancing to help stabilize the economy.
These are the latest in a series of measures to bolster the real estate sector, which accounts for a sizable share of China’s steel demand.
🇧🇷[Tais] Favorable policies have created a good financing environment for real estate companies,” Huatai Futures analysts said in a note.
Benchmark iron ore for January on China’s Dalian Commodity Exchange ended day trading up 2.3% at RMB 770.50 ($107.45) a tonne. Earlier in the session, the contract rose to RMB 780.50, the highest since mid-June.
Dalian iron ore is up more than 25% this month after a sell-off in October, driven by fears of continued weakness in demand from China due to Covid-19 restrictions and a liquidity crunch in the domestic property sector.
On the Singapore Exchange, the most traded January contract for the steel ingredient rose 2.2% to US$99.50 a tonne.
Source: CNN Brasil
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