The ferrous market began to rise today, driven by the positive news released from China conference. Market talks said that actions are being taken on various fronts, including trade-in subsidises, debt reductions, social benefits, and reforms, which have boosted market confidence to some extent.
The iron ore spot prices at ports were relatively restrained vs. the futures market, up by Rmb5-10/ton yuan when the market closed. Steel mills continued to purchase on-demand, while traders' sentiment remained high. The ongoing tug-of-war between restocking and maintenance checks will be the main factor affecting iron ore spot prices. Additionally, supportive policies are also leading to a short-term bullish trend for iron ore.
The iron ore futures market fluctuated upwards today. Before noon, the market was awaiting the results of the conference, leading to narrow fluctuations. In the afternoon, market talks about the conference results began to spread, and both the stock market and the A50 index started to rally, with iron ore prices following suit in an upward trend. Currently, iron ore remains in an upward channel. Watch out the selling pressure around the previous high of Rmb819.5/ton.
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