SINGAPORE: Iron ore futures edged higher for the second straight session on Wednesday, as hopes of further fiscal support for China’s beleaguered property sector overshadowed weaker credit lending data from the top consumer.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.52% higher at 768.0 yuan ($106.33) a metric ton.
The benchmark December iron ore on the Singapore Exchange was 0.48% higher at $101.0 a ton, as of 0330 GMT. Chinese banks extended 500 billion yuan ($69.5 billion) in new loans last month, a sharp drop from September and trailing analysts’ expectations, data showed on Monday.
The weak readings followed data showing the slowest consumer price growth in four months in October and deepening producer price deflation. Sentiment in China has remained largely downbeat after Beijing’s disappointing stimulus package on Friday.
But a Bloomberg news report on Tuesday saying China is preparing to cut home-buying taxes somewhat lifted the mood. Friday’s measures at least set the foundation for further fiscal stimulus roll-out by local governments and state-owned enterprises, who will likely play a large role in the moves to stabilise the property market in future, said ING analysts.
The property market remains China’s largest steel consumer despite the sector’s falling share amid the protracted crisis since 2021.
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