The prices of iron ore cargoes with a 62% iron content experienced an upswing, surpassing $92 in late Stember, driven by rorts of imminent stimulus measures from China to bolster its economy. Beijing is rumored to be contemplating the injection of up to 1 trillion yuan into the country's largest state banks to enhance economic activity.
Earlier this week, China announced a series of economic support initiatives, including a planned cut in the reserve requirement ratio by 50 basis points before the year's end and reductions in key lending rates such as the seven-day ro rate, medium-term lending facility, and loan prime rates.
In a further sign of tightening supply, total iron ore inventories across Chinese ports fell to 146.6 million tons, according to industry data. Additionally, iron ore shipments from major suppliers in Australia and Brazil have declined by 4% week-on-week as of Stember 22.
Since the beginning of 2024, iron ore has dropped $44.12/MT or 32.35%, as indicated by trading on a contract for difference (CFD) tracking the benchmark market for this commodity. Analysts anticipate iron ore will trade at $97.04/MT by the end of this quarter, with expectations of a further decrease to $92.24/MT in the next twelve months.