BEIJING- Chinese benchmark iron ore futures surged nearly 5 percent on Tuesday, extending gains into a second straight session and fuelling prices of steel products despite uncertainties driven by government intervention.
Spot prices of iron ore with 62 percent iron content for delivery to China jumped $6 to $140 a ton on Monday from the previous session, according to data compiled by SteelHome consultancy.
“Iron ore is now caught between two opposing policies in China,” Commonwealth Bank of Australia commodity analyst VivekDhar said in a note, referring to regulatory stimulus to drive economic growth and price curbs for the steelmaking ingredient.
The country’s four biggest banks on Monday lowered mortgage rates in Guangzhou city by 20 basis points in a fresh move to support the property sector, according to people familiar with the matter.
Meanwhile, China’s finance minister vowed to implement bigger cuts in taxes and fees this year and strengthen coordination between fiscal and monetary policy. – Reuters
