BEIJING- Iron ore futures climbed on Tuesday to their highest level in more than a week, led by increased investor confidence after policymakers in top consumer China pledged to stabilize its market.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) climbed 1.84 percent to 969.5 yuan ($134.99) a metric ton, as of 0234 GMT, the highest level since Jan. 12.
The benchmark February iron ore on the Singapore Exchange was 2.24 percent higher at $131.85 a ton, also the highest since Jan. 12.
China will take more forceful and effective measures to support market confidence, state media CCTV reported on Monday, citing a cabinet meeting, following a plunge in Chinese shares.
Meanwhile, China’s major state-owned banks took action on Monday to bolster the yuan and prevent it from falling too rapidly, Reuters reported.
This move came after Beijing kept benchmark lending rates unchanged at its monthly fixing on Monday, following last week’s decision to hold its medium-term lending facility rate steady, reflecting Beijing’s limited room for monetary easing amid pressure on the yuan.
Beijing has set a growth target of around 5 percent for 2024, surpassing last year’s goal of above 4.5 percent , despite expectations of slower growth for the national economy.