Iron ore retested critical level
Iron ore approached 120 dollars per ton again due to the impact of real estate movements in China.
Iron ore rose for the third day and approached $120 per ton. Steel rebar futures in Shanghai rose as much as 1.2 percent, heading for their highest close since early March.
Beijing on Friday announced a vast rescue package for China’s struggling real estate sector, including a 300 billion ($41 billion) fund to help government-backed firms buy excess stock. On the other hand, iron ore futures in Singapore fell 15 percent this year as the housing decline negatively affected steel demand.
Although caution remains about the size and scope of the latest measures, the development signaled at least a shift in the authorities’ thinking about the crisis.