Iron ore futures snap 3-day losing streak on China property support moves

SINGAPORE: Dalian iron ore futures snapped a three-session losing streak on Thursday, as recent support measures for China’s property sector outweighed worries over the recent rise in Covid-19 cases. The most-traded January iron ore on China’s Dalian Commodity Exchange ended day-time trade 1.3% higher at 732.0 yuan ($102.36) a tonne, off an earlier high.

On the Singapore Exchange, the benchmark December iron ore was up 0.6% at $95.90 a tonne as of 0810 GMT. While traders contemplated the support measures for China’s property sector, Premier Li Keqiang convened a State Council meeting to emphasise the importance of economic performance in the fourth quarter, ANZ Research said in a note.

Chinese property shares jumped on Thursday after the country’s biggest commercial banks agreed to provide at least $38 billion in fresh credit lines to developers, adding to recent regulatory support measures to ease a stifling cash crunch in the sector. China reported a record high number of Covid-19 infections on Thursday, with cities nationwide imposing localised lockdowns and other curbs that are darkening the outlook for the world’s second largest economy.

Mainland China’s Health Commission reported 31,656 new corona virus cases for Nov. 23, compared with 29,157 new cases a day earlier. Asian shares mostly tracked Wall Street higher on Thursday while a sell-off in the US dollar was extended, as markets reacted to the possibility of the US Federal Reserve soon slowing its pace of interest rate hikes.