China’s Property Stimulus Creates Iron Ore Price Conundrum
- Authorities warn on prices of steelmaking staple after rally
- Beijing’s plans to end real estate crunch fire up demand hopes
A conveyer belt dumps iron ore into a pile at the Shanghai International Port Group in Shanghai, China.
Photographer: Qilai Shen/Bloomberg
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Can you end a years-long property crisis without triggering a surge in the commodity that stands to benefit most?
That’s the dilemma facing the Chinese government, which is taking the most decisive steps yet to ease the impact of a devastating real estate crunch. Yet it’s already grappling with the bullish consequences for the price of iron ore — a key source of commodity inflation for the world’s second-biggest economy.