BEIJING: Iron ore moved up marginally on Monday as upward momentum aided by healthy fundamentals was partly offset by fears of possible government supervision in top consumer China following the recent price rally and narrowing steel margins.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) added 0.11% to 926.5 yuan ($127.22) a metric ton, as of 0234 GMT. The benchmark December iron ore on the Singapore Exchange was 0.58% higher at $123.65 a ton, as of 0232 GMT.
Prices of the key steelmaking ingredient had found support from Beijing’s rolling out more stimulus to shore up its economy. China will accelerate the issuance and use of government bonds, state-run news agency Xinhua reported on Sunday, citing an interview with new finance minister Lan Foan. This came after it had approved in late October a 1 trillion yuan sovereign bond issue and passed a bill to allow local governments to frontload part of their 2024 bond quotas. Beijing has issued 3.46 trillion yuan, or 91% of the annual total, of special bonds in the first nine months of 2023.
Comments
Comments are closed for this article.