Following Prime Minister Li Qiang's call for "pragmatic and robust" action to boost confidence in the economy, Beijing chose to keep the interest rate on its annual policy loans unchanged. However, the outlook remains mixed. Despite efforts by local governments to support activities, steel consumption remains sluggish and industry profits are weak, according to Minmetal Futures Co. Ltd.
While major projects are resuming in provinces including Guangdong, and there's been an increase in existing home sales in significant cities during the holidays, iron ore has taken a step back this year due to concerns over China's prolonged real estate crisis.
Further insights into the outlook are expected this week as major iron ore producers such as BHP Group Ltd. and Rio Tinto Group are set to announce their earnings. Iron ore fell by 2.9% to $127.50 per ton in Singapore at 11:32 a.m. Dalian iron ore and Shanghai construction steel and hot-rolled coil also experienced declines.
Other base metals were also weak. Copper retreated by 0.7% to $8,427.50 per ton on the London Metal Exchange, while tin, lead, and nickel also saw declines.
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