October 14, 2024 03:30 GMT
METALS: Iron Ore Bounces With China Property Stocks, Copper Softer
METALS
Metals are mixed in the first part of Monday trade. Iron ore is generally tracking positively, up nearly 1.75% for the active SGX contract. This puts us back to $108.05/bbl. Earlier October highs were at $155/ton. Copper is not rallying though, down around 1%, back to $445 on a CMX basis (but this is still above earlier Oct lows).
- China equities have been volatile since the open but since modestly firmer at this stage, although the property sub index on the CSI 300 is outperforming. There was disappointment around the lack of details from the MOF briefing over the weekend, but commitment to stabilize housing sentiment may be aiding related equities.
- This could be driving positive spill over to iron ore, also note steel futures are up close to 2% so far in China today.
- On the inventory side, we edged down a little bit last week in terms of total inventories at China ports. The trend is right for inventories, but the rate of decline is very modest at this stage.
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