May 29, 2024 04:26 GMT
Off Recent Highs, In Line With Cooling Property Equity Rally
IRON ORE
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Iron ore has struggled to maintain a +$120/ton handle in recent weeks. The active Singapore contract sits near $117.60/ton in latest dealings.
- Focus remains on China property market developments, with Beijing expected to follow suit in terms of the larger cities in terms of easing restrictions (see this link). Other reports indicate increase property related activity in the capital in recent weeks, following looser policy settings (Shanghai Securities News).
- Steam has come of the property equity related rebound though. The CSI 300 real estate index sits around 12% off recent highs, unable to breach its 200-day MA. Sentiment is better in this space in the first part of trade today.
- On the supply front, iron ore inventories at China ports are no longer climbing, but equally aren't correcting lower either. We were last around 2yr highs in terms of inventory levels.
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