Iron ore bound for fourth weekly gain on China’s property sector moves

BEIJING: Iron ore futures were set for a fourth straight weekly gain on Friday, aided by China’s new measures to shore up its troubled property sector and boost confidence, although higher inventories and concerns over a Chinese steel output cap limited gains.

The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) traded 0.3% higher at 844 yuan ($116.16) a metric ton, as of 0244 GMT.

The benchmark September iron ore on the Singapore Exchange was 0.1% higher at $116.45 a metric ton, as of 0234 GMT. China’s central bank and financial regulator on Thursday issued notices to ease some borrowing rules to aid homebuyers, including lowering the existing mortgage rate for first-home buyers and the down payment ratio in some cities, in the latest efforts to revive a crisis-hit property market.

The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 51.0 in August from 49.2 in July, beating analysts’ forecasts of 49.3 and marking the highest reading since February. China will continue to cap steel output this year, the general manager of state-owned Baoshan Iron & Steel said on Thursday in a briefing on its first-half earnings.