Chinese president's comments, stimulus behind iron ore price surge, market participants say

Iron ore prices unexpectedly surged on Tuesday February 11, having fallen by around 10% in recent weeks as a result of the novel coronavirus outbreak in China.

Market participants attributed the increase mainly to Chinese President Xi Jinping urging businesses to slowly return to work after an extended break for the Chinese New Year and a stimulus by the country’s central bank this week.
The most-traded May iron ore contract on the Dalian Commodity Exchange breached 600 yuan ($86) per tonne on Tuesday morning to end the early session at 608.50 yuan per tonne, up 4.5% from its opening price. The contract went on to end the day at 605.50 yuan per tonne, up by 24 yuan per tonne - or 4.1% - from Monday’s closing price.
Xi called for greater efforts to minimize the impact of the novel coronavirus epidemic on the economy and “reach the goals and tasks of economic development this year.”

He urged companies to restart their operations gradually and called for financial and other forms of support to...

Published

Deepali Sharma

Karen Shi

Alex Theo

February 11, 2020

09:39 GMT

Singapore, Shanghai