Iron ore touches $130/ton for first time since March on strong China data (NYSE:BHP)
Iron ore futures in Singapore topped $130/metric ton for the first time in eight months Wednesday, driven by stronger than expected industrial production in China.
China’s industrial output rose 4.6% in October from the year-ago period, the strongest reading since April and above the 4.4% analyst consensus estimate.
Bloomberg also reported the Chinese government plans to provide at least 1T yuan ($137B) of low-cost financing for urban village renovation and affordable housing programs, which would mark a major boost to efforts to put a floor under the country’s property downturn.
According to Reuters, the Singapore Exchange’s benchmark December iron ore (SCO:COM) recently was +1.7% at $128.18/ton, its fourth straight daily gain, after reaching as high as $130.90/ton, while the most-traded January iron ore on China’s Dalian Commodity Exchange closed +1% at $134.07/ton, after hitting its best level since May 2021 earlier in the session.
Potentially relevant stocks include BHP (NYSE:BHP), Rio Tinto (NYSE:RIO), Vale (VALE), Fortescue (OTCQX:FSUMF), Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) and Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY).
Sentiment is rising due to a positive macroeconomic environment both domestically and abroad, Mysteel’s Steven Yu told Bloomberg, noting the news of China’s stimulus plans and the potential for interest rate cuts in the U.S. after a surprisingly tame inflation report.
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