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Iron ore strikes two-week high on enhanced Chinese economic outlook

Iron ore futures costs hit a twoweek high up on Monday, buoyed by an enhanced Chinese economic outlook following strong services information and continued stimulus expectations from the world's most significant consumer.

The most-traded September iron ore agreement on China's. Dalian Product Exchange (DCE) ended daytime trade. 1.97% greater at 776.5 yuan ($ 108.69) a metric load.

It struck an intraday high of 788.5 yuan, its strongest level. since July 22.

The benchmark September iron ore agreement on the. Singapore Exchange was 0.76% higher at $104.6 a load, likewise its. highest since July 22, as of 0720 GMT.

Development in China's services activity sped up in July,. expanding for the 19th straight month, a private-sector study. showed on Monday.

The Caixin/S&& P's composite PMI index, which tracks both the. services and making sectors, relieved from June however stayed. in expansionary territory, and employment rose at the fastest. speed in 11 months, the study found.

Meanwhile, China's State Council on Saturday released a. communique to promote the top quality development of service. intake.

The document noted steps to enhance the vigor of the. country's intake, consisting of improving the quality of. services and products, and offering financial backing for. intake such as tax deductions and credit support.

With domestic demand as one of the larger drags on China's. economy this year, it is a good indication policies are coming into. play to support consumption, though markets may still be hoping. for bigger scale demand-side encouraging policies such as. intake vouchers, stated ING experts in a note.

The steel market is expected to rebound today, as. increased stimulus efforts improved market confidence last week,. and demand for building materials is anticipated to recover, stated. Hexun Futures, a financial info website specialising in. futures.

Steel criteria on the Shanghai Futures Exchange were. more powerful. Wire rod climbed up about 1.5%, hot-rolled coil. innovative 0.74%, rebar got around 0.4%, and. stainless steel included about 0.1%.

Other steelmaking ingredients on the DCE made headway, with. coking coal and coke up 0.25% and 0.35%,. respectively.

(source: Reuters)