GLNCY - Iron ore copper prices rise as China flags stimulus for property sector
2023-07-20 08:27:08 ET
Prices for iron ore and other base metals rebounded Thursday on rising hopes that China would launch additional support for its troubled real estate sector.
Bloomberg reported that Chinese authorities are considering steps to ease home buying, with the intention to lift some of the weight off subdued commodity demand from the real estate sector.
Further supporting metals prices, the yuan rose after the government tweaked cross-border financing rules, which helped the purchasing power of dollar-priced commodities for buyers holding the Chinese currency.
According to Reuters, the most-traded September iron ore ( SCO:COM ) on China's Dalian Commodity Exchange ended daytime trading +1.7% at 849.5 yuan/metric ton ($118.25), snapping a three-session losing streak, and the benchmark August iron ore contract on the Singapore Exchange recently was +2.1% at $114.70/ton.
On the London Stock Exchange, three-month copper ( HG1:COM ) recently traded +1.5% to $8,556/metric ton; aluminum, lead, zinc, tin and nickel futures also rose.
Potentially relevant stock tickers include ( NYSE: BHP ), ( NYSE: RIO ), ( VALE ), ( FCX ), ( SCCO ), ( OTCQX:FSUMF ), ( OTCPK:GLCNF ), ( OTCPK:GLNCY ), ( OTCQX:AAUKF ), ( OTCQX:NGLOY )
Earlier this week, Rio Tinto ( RIO ) raised concerns about a global economic slowdown as it reported various production hangups across operations, but said its iron ore output should finish the year at the upper end of guidance .
BHP ( BHP ) reported its highest-ever annual iron ore production , helped by the continued ramp-up at its South Flank operations in Western Australia, but said it faced rising costs.
More on BHP:
- Financial and valuation comparison to sector peers
- Analysis: BHP: Future Copper And Nickel Cash Flows Will Support The Dividend Yield
- Stock price return: Down 1% YTD, up 19% in the past 12 months
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Iron ore, copper prices rise as China flags stimulus for property sector