SINGAPORE- Iron ore futures prices rose on Monday to their highest in a week, underpinned by growing bets top consumer China will unveil more stimulus in its third plenum this week after a batch of economic data disappointed investors.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.76 percent higher at 840 yuan ($115.68) a metric ton, the highest since July 8.
The benchmark August iron ore on the Singapore Exchange was 1.3 percent higher at $109.2 a ton. It hit an intraday high at $110.15 a ton earlier in the session, also the highest since July 8.
China’s economy slowed in the second quarter, data showed on Monday, as a protracted property downturn and job insecurity weighed on domestic demand, keeping alive expectations Beijing will need to unleash more stimulus.
The world’s second-largest economy grew 4.7 percent in April-June, official data showed, its slowest since the first quarter of 2023 and missing a 5.1 percent analysts’ forecast in a Reuters poll. Growth was also down from the 5.3 percent expansion in the previous quarter.
This came after Chinese bank lending jumped less than expected in June while some key money gauges hit fresh record lows, data showed last Friday.
A highly anticipated third plenum that started from Monday will outline efforts to promote advanced manufacturing, manage a vast property crisis, and boost domestic consumption, policy advisers say.
