On Monday, iron ore futures surged, continuing a rise that had been sparked by expectations for a third-quarter economic recovery in China, the world's largest producer and user of steel, as well as support for the nation's beleaguered real estate market.
On China's Dalian Commodity Exchange, the most traded iron ore for September delivery finished midday trading 7.1 percent higher at 711 yuan (USD 105.2) per ton after earlier reaching 723.50 yuan (USD 107), its highest level since July 14.
The Singapore Exchange's front-month August iron ore contract was up 2.2 percent at USD 105.40 a ton on Monday after posting its first weekly rise in three weeks on Friday.
According to official media on Friday during a normal cabinet meeting, China would make "huge efforts" to further its economic recovery, especially in the key third quarter, with a focus on stabilizing employment and prices.
The COVID-19 lockdowns that reduced overall demand and interrupted activity caused China's economic growth to decelerate significantly in the June quarter.
Following news that China planned to create a real estate fund with a potential value of up to 300 billion yuan (USD 44.4 billion) to help more than a dozen property developers, Chinese steel futures also extended their advances.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.
