Iron ore prices rise on Monday as weak inflation data in China raised expectations of additional economic stimulus. Traders are optimistic that Beijing will introduce measures to support growth and maintain its 5% annual target. However, concerns over demand still limit gains.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) increased by 0.39%, reaching 777.5 yuan ($107.17) per metric ton. Similarly, the April iron ore benchmark on the Singapore Exchange added 0.4%, hitting $100.85 per ton. Despite this rise, prices briefly dropped below the psychological $100 level during early trading.
In February, China's consumer price index fell more than expected, marking its sharpest decline in 13 months. Meanwhile, producer price deflation persisted, indicating economic challenges. Analysts believe these factors may push the government to roll out further stimulus measures. Additionally, China continues to face trade tensions with the United States, adding pressure on its economy.
Market sentiment has improved due to signs of recovery in China's property sector. This sector has struggled for two years, negatively impacting steel demand and prices. However, iron ore prices remain under pressure as China commits to reducing crude steel output. Lower steel production leads to decreased demand for iron ore and other steelmaking raw materials.
On the DCE, prices for other steelmaking ingredients declined. Coking coal dropped by 0.09%, while coke fell by 0.36%. Similarly, major steel benchmarks on the Shanghai Futures Exchange weakened. Rebar lost 0.89%, hot-rolled coil dropped 0.5%, and wire rod fell by 0.78%. However, stainless steel managed a slight gain of 0.15%.
Traders remain cautious as they await official policy announcements. Any new stimulus measures from Beijing could influence market trends in the coming weeks.
For the latest updates on Forex and commodities trading about the Iron ore prices rise, visit our website: FIXIO Markets.
Iron ore prices rise as China’s weak inflation data fuels hopes for more stimulus. However, concerns over demand persist.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)