Iron ore futures prices in Dalian hit their highest in two months on Tuesday (10), after Beijing eased its monetary policy for the first time in more than a decade, spurring bets on more stimulus to boost economic growth. of the main ore consumer market.
The January iron ore contract most traded on China’s Dalian Commodity Exchange (DCE) ended the day’s trading with an increase of 1.87%, at 817.0 yuan (R$ 680.58) per ton, the highest level since October 8th.
January’s benchmark iron ore on the Singapore Exchange rose 0.48%, to US$105.8 (R$639.67) a ton.
China will adopt an “appropriately loose” monetary policy next year, the first easing of its stance since late 2010, the Politburo said on Monday.
Iron ore jumped on the Politburo news as authorities’ pledge to “effectively prevent and neutralize risks in key sectors to ensure no systematic risks escalate” was seen as a sign of further measures to stabilize the market real estate, Westpac analysts said in a note.
The policy change neutralized the impact of softer customs data released on Tuesday, which showed a sharp slowdown in China’s exports, while imports unexpectedly declined.
In particular, iron ore imports fell 1.91% from October as shipments slowed ahead of the low demand season for steel, when cooler weather halts construction work in the north of the country.
Top Chinese policymakers are expected to meet this week at the Central Economic Work Conference to define priorities for next year, including the annual growth target.
