Iron Ore Heads for First Weekly Gain in Five on Policy Optimism
- Port stockpiles in China extend declines for eighth week
- Chinese banks cut key interest rate for loans by a record
Freight train wagons are filled with mined iron ore.
Source/Bloomberg
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Iron ore futures in Singapore were on track for the first weekly advance in five as China’s move to slash borrowing rates and shrinking stockpiles of the steelmaking raw material buoyed sentiment. Base metals also rose.
Futures in Singapore surged more than 6% after midday trading, marking its largest daily increase since mid-March. Chinese banks cut a key interest rate for long-term loans by a record amount on Friday, a move that would reduce mortgage costs and may help counter weak loan demand. Meanwhile, iron ore stockpiles at major Chinese ports dropped for an eighth consecutive week, according to Mysteel data compiled by Bloomberg.