Iron ore futures rose on Tuesday to their highest levels in about seven weeks, as hopes grew for more property sector-focused stimulus measures in top steel producer China.
Steel benchmarks and other steelmaking ingredients in China also advanced as real estate stocks listed in Hong Kong jumped nearly 8 percent on hopes that Beijing would soon roll out supportive measures to bolster the embattled property sector.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended morning trading 3.1 percent higher at 780 yuan ($109.71) a ton, just below the session high of 780.50 yuan, its strongest since April 19.
On the Singapore Exchange, the steelmaking ingredient’s benchmark July contract was up 2.9 percent at $108.10 a ton. It earlier hit $108.15, its highest since April 21.
SGX iron ore has rallied 18 percent from a low close to $90 in late May, as disappointing Chinese economic data, including those pointing to a still weak property sector, fueled speculations that the world’s top steelmaker would unveil additional stimulus measures.
On Friday, Bloomberg News reported, citing people familiar with the matter, that regulators were considering a package of measures including further relaxing restrictions for residential purchases.
