SINGAPORE: Prices of iron ore futures rose on Wednesday on hopes of further monetary stimulus from top consumer China following its key Politburo meeting, although gains were capped by lacklustre economic data from the world’s second-largest economy.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.7% higher at 775 yuan ($107.13) a metric ton. The benchmark August iron ore on the Singapore Exchange was 2.35% higher at $101.6 a ton, as of 0335 GMT.
Chinese leaders signalled on Tuesday that the stimulus measures needed to reach this year’s economic growth target will be directed at consumers, deviating from their usual playbook of pouring funds into infrastructure projects.
The Politburo, the ruling Communist Party’s top decision-making body, stressed that it is necessary to focus on boosting consumption to expand domestic demand, state media reported. While no new material shifts in policies were announced to help stabilise and broaden growth, it is clear additional support for Chinese demand is in the works for the remainder of 2024 into 2025, Westpac analysts said in a note.
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