MANILA: Iron ore futures soared on Monday, extending a rally spurred by hopes of an economic rebound for top steel producer and consumer China in the third quarter, and support for the country’s troubled property sector.
The most-traded iron ore, for September delivery, on China’s Dalian Commodity Exchange ended daytime trade 7.1% higher at 711 yuan ($105.27) a tonne, after earlier hitting 723.50 yuan, its strongest level since July 14.
Iron ore’s front-month August contract on the Singapore Exchange was up 2.2% at $105.40 a tonne, as of 0702 GMT, after lodging its first weekly gain in three weeks on Friday.
Dalian coking coal rose 3.3% and coke advanced 2.9%.
China will make “great efforts” to consolidate its economic recovery particularly in the crucial third quarter, putting a priority on stabilising employment and prices, state media reported on Friday after a regular cabinet meeting.
“The market is looking forward to the economy (rebounding) in the third quarter,” analysts at Zhongzhou Futures said in a note.
China’s economic growth slowed sharply in the June quarter, hit hard by COVID-19 lockdowns that dampened overall demand and disrupted activity.
Chinese steel futures also extended their gains following reports that China was planning to set up a real estate fund that could be worth up to 300 billion yuan to support more than a dozen property developers.
Rebar on the Shanghai Futures Exchange rose 0.8%, hot-rolled coil climbed 1.6%, and stainless steel advanced 1.2%.