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Futures Extend Weeks Gains On Friday

IRON ORE

Weekly gains were extended on Friday as Chinese authorities increased economic support aimed at stimulating the crucial construction and property industries.

  • The October contract finished dealing at $121.00/tonne on Friday, closing the week up ~8%. We sit ~23% above mid August levels.
  • Fresh positive news for the metals space crossed on Friday as new home prices in August rose in 17 Chinese cities. The PBOC injected cash into markets for the 10th consecutive month and cut lenders’ reserve requirements for the second time this year.
  • Iron ore stockpiles at ports have fallen to their lowest in more than three years, according to data from Steelhome.

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