The most-traded January iron ore on
China’s Dalian Commodity Exchange ended daytime trade 0.8% lower at 725.5 yuan
($101.03) per metric ton. On the Singapore Exchange, the benchmark September
iron ore was up 1.6% at $102.4 a ton, as of 0720 GMT, snapping a three-day
losing streak.
China’s
central bank has been in discussion with local property developers for ways to
better support the sector financially and the market has bought into this with
a recovery rally, said Atilla Widnell, managing director at Navigate
Commodities in Singapore. China’s Zhengzhou city launched measures to support
its property market, the first of such moves by a big city heeding signals from
policymakers, while the central bank governor pledged on Thursday to guide more
financial resources towards the private economy.
These are the
latest in a series of policy measures in recent weeks to support the economy as
its post-pandemic recovery falters. However, Widnell said the firm was not
hopeful that funds would actually be diverted to steel-intensive property
construction and infrastructure projects, since companies have “acted rather
opportunistic” this year for fear of becoming the next Evergrande. Flooding in
Hebei from record rainfall also added to market worries about slowing local steel
production.
Meanwhile,
inventories of the five major steel items held by traders across China rose
2.1% between July 28 and Aug. 3 for a sixth straight weekly gain, a Mysteel
survey showed on Thursday.
The
most-active rebar contract on the Shanghai Futures Exchange fell 0.6%,
hot-rolled coil slid 0.2%, wire rod grew 1.2%, and stainless steel climbed
0.8%.
Other
steelmaking ingredients, Dalian coking coal and coke dropped 0.7% and 2.3%,
respectively.