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Iron ore futures in Singapore surpassed $130 per metric ton for the first time in eight months on Wednesday, boosted by stronger-than-expected industrial production in China.
China’s industrial production rose 4.6% in October from the same period a year earlier, the strongest reading since April and above the analyst consensus estimate of 4.4%.
Bloomberg also reported that the Chinese government plans to provide at least 1 trillion yuan ($137 billion) of low-cost financing for affordable housing and urban village renewal programs, which would be a major boost to efforts to put a floor to the ground. the country’s real estate crisis.
According to Reuters, the Singapore Exchange’s December iron ore benchmark (SCO:COM) was recently +1.7% to $128.18/t, its fourth consecutive daily gain, after hitting $130.90/t, while January’s most traded iron ore on China’s Dalian Commodity Exchange closed +1% to $134.07/t, after reaching its best level since May 2021 earlier in the session.
Potentially relevant stocks include BHP (New York Stock Exchange: BHP), Rio Tinto (New York Stock Exchange: RIO), Vale (VALE), Fortescue (OTCQX:FSUMF), Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) and Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY).
The feeling is increasing due to a positive macroeconomic environment both domestically and abroad, Mysteel’s Steven Yu told Bloomberg, highlighting news about China’s stimulus plans and the potential for US interest rate cuts after a surprisingly moderate inflation report.
