SINGAPORE- Iron ore futures prices rose on Monday, as investors sentiment was bolstered by Beijing’s latest efforts to revive its struggling property market and an expected wave of restocking from steelmakers after returning from Labor Day holiday break.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 2.06 percent higher at 891 yuan ($123.51) a metric ton.
The benchmark June iron ore on the Singapore Exchange was 1.45 percent higher at $118.75 a ton.
Beijing said in a politburo meeting on April 30 that it would coordinate and improve policies to clear housing inventory and private data showed April home sales for major property developers dropped at a slightly slower pace.
Chinese derivatives markets which were closed on May 1-3 for the May Day holiday had yet to react to the positive signals.
“There is some positive change in this meeting content compared to the one held late last December; the sales of housing inventory will provide substantial help to property developers facing capital strains,” analysts at China Galaxy Securities said in a note.
Beijing also announced “optimized measures” last Tuesday to allow some residents to buy a new flat in outer districts to boost home sales, after Chengdu city in the southwestern region eased its house buying restrictions in late April.
