BEIJING: Iron ore futures recovered on Thursday, as Donald Trump winning the US presidential election heightened hopes that top consumer China would unveil stronger stimulus measures to offset any impact from a potentially wider trade war.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 2.11% higher at 799.5 yuan ($111.56) a metric ton, its highest since Oct. 16.
The benchmark December iron ore contract on the Singapore Exchange rose 1.84% to $105.85 a ton as of 0714 GMT. Trump’s comeback to the White House sparked concerns over a wider trade war that could hit consumption of metals, with the metals complex recording broad losses on Wednesday.
The president-elect has also threatened to impose a 60% blanket tariff on imports of Chinese goods to boost US manufacturing. China’s National People’s Congress Standing Committee is meeting over Nov. 4-8, with traders keenly focused on directions from long-awaited fiscal stimulus measures.
China will continue to implement a supportive monetary policy to help promote sustained economic recovery, Pan Gongsheng, governor of the People’s Bank of China, said in remarks published on Thursday.
“If a strong fiscal stimulus policy is implemented, coupled with the realization of the infrastructure rush and replenishment ahead of the year-end, the short-term policy stimulus and marginally improved fundamentals are expected to resonate, supporting prices,” analysts at Jinrui Futures said in a note.
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