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Iron ore price rises on China property support

Shanghai Trade Center construction. Stock image.

Iron ore prices climbed on Tuesday propped up by China’s moves to ramp up support for struggling property developers.

China’s securities regulator will allow Chinese developers listed on the Hong Kong Stock Exchange and on Chinese stock exchanges to sell additional shares to acquire real estate assets, replenish working capital, or repay debts, lifting a ban on such refinancing.

The measures are the latest in a slew of steps taken to shore up the property sector that accounts for a sizeable portion of China’s steel demand, such as the 16 steps outlined by regulators to support the industry and the fund-raising support that China’s biggest banks have agreed to provide.

“(Such) favorable policies have created a good financing environment for real estate companies,” Huatai Futures analysts said in a note.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $101.60 a tonne Tuesday morning, up 2.8%.

iron ore price

Benchmark January iron ore on China’s Dalian Commodity Exchange ended daytime trade 2.3% higher at 770.50 yuan ($107.45) a tonne. Earlier in the session, it soared to 780.50 yuan, its highest since mid-June.

Dalian iron ore has rallied more than 25% this month.

(With files from Reuters)