Iron ore extends rally on support measures for Chinese property sector

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Dalian iron ore futures rose on Friday, extending a rally on recent support measures revealed for China’s property sector, although the major iron ore contract is heading for a weekly loss amid record Covid-19 cases in China, the world’s largest steel producer, hurt sentiment.

January’s top-traded iron ore on China’s Dalian Commodity Exchange finished the day trade up 3.3% at RMB 758.0 ($105.84) a ton, the highest since August 1.

On the Singapore Stock Exchange, December’s benchmark iron ore rose 3.0% to $98.60 a ton.

Iron ore added to recent gains following recent measures to support China’s real estate sector, while China’s State Council said monetary tools such as cutting banks’ reserve requirements will be used to maintain liquidity, it said ANZ Research.

China’s largest commercial banks have pledged at least $162 billion in new loans to property developers, bolstering recent regulatory measures to ease the industry’s stifling liquidity crunch and triggering a rebound in real estate stocks.

China on Friday posted another record of daily Covid-19 infections as cities across the country apply measures and restrictions to control outbreaks.

The Mainland China Health Commission reported 32,943 new cases of the coronavirus on Nov. 24, up from 31,656 new cases a day earlier.

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Source: Terra

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