Iron ore rebounds

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Dalian and Singapore iron ore futures rose on Tuesday, buoyed by news of further government support for Chinese property developers hit by a deepening financial crisis, but China’s worrying economic backdrop capped gains.

The most-traded iron ore, for delivery in January 2023, on China’s Dalian Commodity Exchange ended morning trade 0.3 percent higher at 724.50 yuan ($106.78) a ton, after three sessions of losses.

On the Singapore Exchange, the front-month September contract rose 1.6 percent to $107.65 a ton following two sessions of selloff.

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Chinese regulators have instructed state-owned China Bond Insurance Co. Ltd. to provide guarantees for onshore bond issuance by a few private property developers, Reuters reported on Monday.

The additional state support comes as latest activity data pointed to an economic slowdown in China amid Beijing’s zero-COVID policy and the property downturn.

Rebar on the Shanghai Futures Exchange gained 0.3 percent.

Data showing Chinese steel mills ramping up production this month also supported iron ore and other steelmaking ingredients.

Dalian coking coal rose 1 percent and coke climbed 0.8 percent.

“Iron ore is supported by demand in the short term, (but) there is pressure in the medium term,” Zhongzhou Futures analysts said in a note. – Reuters

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