Iron ore futures rebounded on Tuesday after hitting nearly two-week lows in the previous session, as Beijing was seen preparing an additional sovereign debt issuance as part of efforts to spur economic growth.
The steelmaking ingredient, however, was confined in tight price ranges, with its gains capped by persistent worries about a deepening crisis in China’s property sector.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended morning trade 1.1 percent higher at 842 yuan ($115.31) per metric ton, after a three-session slump.
On the Singapore Exchange, the benchmark November contract rose 0.9 percent to $113.80 per ton.
China, the world’s top steel producer, is set to approve slightly more than 1 trillion yuan ($137 billion) in additional sovereign debt issuance on Tuesday as Beijing steps up its efforts to spur infrastructure spending, three sources told Reuters.
“We expect the situation in China’s property market will stabilize in the latter part of the year and China’s steel demand will record slight positive growth thanks to government measures,” said Máximo Vedoya, chairman of the World Steel Association’s economic committee, in the Brussels-based group’s latest outlook issued on Oct. 17. -Reuters