by Enrico De la Cruz
(Reuters) – Ferrous futures contracts in China – the world’s largest steel producer – advanced on Thursday, with iron ore traded in Dalian hitting the fourth consecutive session of gains, as the country’s faltering economic recovery sustains expectations of additional support measures.
The most traded iron ore contract on the Dalian commodities exchange closed up 1.6% at RMB 1,234 ($191.01) per tonne.
On the Singapore stock exchange, the most active iron ore maturity, for August, rose 1.9%, to 214 dollars a ton.
China’s economy grew slower than expected in the second quarter, up 7.9% year-on-year, reflecting the slowdown in manufacturing activity, the impact of higher raw material costs and new outbreaks of Covid -19, which affected the momentum of the recovery.
Disappointing Gross Domestic Product (GDP) data spurred expectations that China will keep interest rates stable at current levels for “an extended period” and could launch “more structural monetary measures” in the second half of the year, ANX analysts said in a statement.
“We believe that the authorities will actively reduce the risk of the financial system in the second half of the year,” they said.
(Reporting by Enrico Dela Cruz, in Manila)
+ Learn about the effectiveness of each vaccine against Covid-19