"Prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin rose to above $106 per tonne, extending its rebound from the five-month low of $99.5 touched on May 5th as hopes of robust future construction demand outweighed recent evidence of China’s underwhelming economic recovery. A slew of concerning economic data drove the People’s Bank of China to signal that liquidity and borrowing rates will remain expansionary to accommodate for demand creation. The pledge coincides with market bets that the government will also announce new stimulus to combat a slowing economy. Among the latest economic releases, low demand for construction and infrastructure was underscored by a 16.2% contraction in property investment in April, while industrial production slowed and manufacturing activity unexpectedly declined."