Iron ore futures pop 7% on hopes for China economic rebound

Jul. 25, 2022 8:58 AM ETRio Tinto Group (RIO), BHP, VALESCO:COMBy: Carl Surran, SA News Editor19 Comments

Reclaimer working on an iron ore site under blue sky

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Iron ore futures surged more than 7% in China on Monday, extending a recent rally sparked by hopes of an economic rebound in top steel producer China.

According to Reuters, the most-traded iron ore for September delivery (SCO:COM) on China's Dalian Commodity Exchange ended daytime trading +7.1% at 711 yuan/metric ton ($105.27) after earlier reaching 723.50 yuan, its best level since July 14.

The front-month August contract on the Singapore Exchange was +2.2% at $105.40/ton, following its first weekly gain in three weeks.

Top global miners are indicated higher in the pre-market, including (NYSE:RIO) +3.2%, (NYSE:BHP) +3.5% and (NYSE:VALE) +1.6%.

State-run media said China pledged to make "great efforts" to consolidate its economic recovery in Q3 by stabilizing employment and prices.

China reportedly is considering the creation of a real estate fund that could be worth up to 300B yuan to support several property developers.

China's weak economic growth in Q2 had sent iron ore futures tumbling below $100/metric ton earlier this month.

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