Muzhu Mining Ltd. (CSE: MUZU)
Creating lasting wealth by developing gold and silver properties with near-term mining potential
On Monday (local time, September 30), iron ore futures soared for the fifth consecutive trading day. This surge was driven by China’s latest real estate stimulus policies and a series of monetary easing measures, boosting the outlook for demand for this key steelmaking raw material.
As of 03:04 GMT, the most traded iron ore contract for January on the Dalian Commodity Exchange rose by 9.5% to 812.5 Chinese yuan per ton ($115.83), after reaching 835 yuan earlier in the session, the highest level since July 16.
In Singapore, the benchmark iron ore price for November soared by 8.53% to $110.85 per ton, hitting a high of $113 during trading, which is also the highest point since July 5.
China’s central bank stated on Sunday that commercial banks should, in principle, conduct bulk adjustments for eligible existing housing loans by October 31 this year, lowering the interest rates on these loans to be comparable to the rates on newly issued loans, allowing borrowers to benefit sooner. This policy is part of a comprehensive effort to support China’s struggling real estate market, which is the largest consumer of steel.
Additionally, the three major cities of Guangzhou, Shenzhen, and Shanghai lifted key home purchase restrictions.
Analysts at ANZ Bank noted, “Efforts to reduce the inventory of unsold properties will greatly shorten the time for new construction activities to emerge.”
Previously, Beijing announced its largest stimulus measures since the pandemic last Tuesday and lowered interest rates on Friday to guide the economy away from deflation fears and back towards the government’s growth targets.
Chinese real estate developer stocks rose, and the CSI 300 index gained about 9%.
Analysts indicated that the persistent expectations of strong fiscal stimulus for the world’s second-largest economy also support continued growth momentum.
The benchmark steel index on the Shanghai Futures Exchange saw a significant increase, with rebar and hot-rolled coils rising nearly 7% to their limits, while wire rod and stainless steel each rose by over 3%.
