SINGAPORE- Iron ore futures rose on Wednesday as traders welcomed China’s decision to roll out further stimulus, although lingering concerns about steel demand capped gains.
The most-traded September iron ore on China’s Dalian Commodity Exchange was poised for a three-day rally, up nearly 2 percent at 867.5 yuan ($121.21) per metric ton.
On the Singapore Exchange, the benchmark September iron ore inched up 0.7 percent at $113.1 a metric ton.
China’s top leaders pledged on Monday to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand.
“The Politburo meeting contained the strongest indication to date of meaningful policy stimulus in the works aimed at boosting economic activity in China,” National Australia Bank said in a note on Wednesday, adding that it reflects the expected uptick in demand from the China stimulus.
Investors piled into Chinese property developers’ shares and bonds on Tuesday following a sharp sell-off in the previous session, after policymakers said they would step up support for the embattled sector.
