China & Iron7 Sep 2023 07:41
$118.5 pt
"Prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin were above $118 per tonne in September, the highest in over four months, amid bets of robust demand for Chinese steel production in the short term. Increasing expectations that Beijing will mandate steel output controls in the near future drove mills to ramp up production in the short term to undercut any controls, increasing demand for iron ore. The latest data showed that steel output in the world’s top producer rose by 2.5% year-to-date until July. In the meantime, measures to stimulate housing demand prevented deeper concerns of lower construction activity amid the ongoing crisis for property developers. The Chinese government eased mortgage curbs in Guangzhou and Shenzhen, extended support measures on the municipal scale, and allowed 12 provinces to issue CNY 1.5 trillion of special financing bonds, while the PBoC slashed multiple of its key rates."