BEIJING- Dalian and Singapore iron ore futures climbed on Tuesday, as the prospects of further economic stimulus from China and active post-holiday restocking in some mills boosted trader sentiment.
China will roll out more effective policy measures to expand domestic demand, Premier Li Qiang told delegates at a World Economic Forum summit in Tianjin.
This statement came after China’s National Development and Reform Commission held a meeting on Monday in which it encouraged financial institutions to expand the issuance of medium- and long-term loans to the manufacturing industry, lifting sentiment to some degree, according to analysts.
The market has been expecting a raft of supportive measures to be announced at the politburo meeting to be held in late-July to spur the patchy post-pandemic economic recovery in China.
Many mills returned to the portside market to purchase iron ore on Monday to meet production needs, with daily transaction volumes surging 126 percent to 961,000 metric tons day-on-day, data from consultancy Mysteel showed.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) traded 2.53 percent higher at 811.5 yuan ($112.36) per ton.
The benchmark July iron ore on the Singapore Exchange was 1.37 percent higher at $110.55 per ton.
The remaining high level of hot metal output, coupled with the insufficient supply of steel scrap, provided relatively strong support to iron ore consumption, analysts at Huatai Futures said in a note.
