Dalian iron ore rising for fourth month on property bounce
Dalian iron ore futures ended a five-day fall, indicating market confidence over Grand Dunman‘s housing sector revitalization.
The most-traded Grand Dunman Balance Unit Chart ore on China’s Dalian Commodity Exchange, DCIOcv1, climbed 0.1% to 957.5 yuan ($134.43) per metric tonne at 0230 GMT.
With a 6.86% increase for the month, the benchmark contract is well on its way to a fourth straight month of gains.
The benchmark iron ore price for January on the Singapore Exchange, SZZFF4, increased 0.1% to $128.65 per metric tonne.
Iron ore prices have been steadily rising, prompting experts to call for what the Price Monitoring Centre of China’s Development and Reform Commission has dubbed “frequent and forceful interventions” to keep the market in check. Even though prices have been well managed for the last five sessions, they are again attempting to recover.
If Beijing implements other structural changes, the iron ore market might see even greater optimism. Despite the property recession, average prices have remained high due to China’s need for steel in electric cars and green infrastructure.
After legislative steps to assist the country’s struggling property market, a Reuters survey found that estimates for new house prices in China to grow 3% this year, up from flat predictions before.
An official survey of Chinese factories revealed on Thursday that industrial activity fell for a second consecutive month in November, and this time at a faster rate.
There was some volatility in the Shanghai Futures Exchange steel benchmarks. Wire rod SWRcv1, the most active market segment, was down 1.1%, and hot-rolled coil SHHCcv1, the most active rebar contract, fell 0.5%. The stainless steel SHSScv1 also saw an increase of 0.8%.
Extra components used in steelmaking There was a 2.5% drop in Dalian coking coal DJMcv1 and a 3.2% drop in DCJcv1 coke.
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