BEIJING- Iron ore futures prices rebounded on Thursday amid mounting speculation that top consumer China will announce more stimulus in its third plenum after disappointing June inflation data.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) recouped early losses to trade 0.43 percent higher at 825 yuan ($113.45) a metric ton.
The benchmark August iron ore on the Singapore Exchange rose 2.1 percent to $107.5 a ton.
China’s consumer prices grew for a fifth month in June but missed expectations, while producer price deflation persisted, with domestic demand mired on a slow recovery track despite support measures for the world’s second-largest economy.
A barrage of disappointing data in the second quarter has raised hopes that Beijing will unveil more economic stimulus in its third plenum over July 15-18, focusing on policies on further deepening reforms and promoting the modernization of China.
Despite a rebound driven by stimulus bets, prices of the key steelmaking ingredient are still under pressure from weak fundamentals, said analysts.
