SINGAPORE – Iron ore futures ticked higher on Tuesday after China’s central bank extended a rescue package for the country’s property sector, although concerns about near-term volatility and warm weather conditions capped gains.
The most-traded September iron ore on China’s Dalian Commodity Exchange was up 0.3 percent at 808.5 yuan ($112.13) per metric ton, recouping some losses from the previous session.
On the Singapore Exchange, the benchmark August iron ore rose nearly 2 percent to $105.7 per metric ton, snapping a two-day losing streak.
China’s central bank on Monday announced with an extension until the end of 2024 some policies in a November rescue package to shore up the real estate sector, with current supports for the sector failing to gain traction and markets expecting more stimulus to be rolled out soon.
Shares of Chinese property developers rose on Tuesday following the extension of these policies.
Still, gains might have been capped following comments from Rio Tinto Chairman Dominic Barton who flagged near-term challenges for the Chinese economy, National Australia Bank said in a note on Tuesday. – Reuters
