Vale board members in a ‘state of war’ over CEO succession — report
Last week, consulting firm Russell Reynolds delivered a list of 15 potential successors for Eduardo Bartolomeo.
The iron ore price rallied on Tuesday after Chinese Premier Li Qiang said that growth has picked up this quarter and more stimulus was in store, boosting the outlook for consumption in the biggest metals importer.
China will roll out more practical, effective measures to expand domestic demand and stoke market vitality, Premier Li told the World Economic Forum in Tianjin.
This statement came after China’s National Development and Reform Commission held a meeting on Monday in which it encouraged financial institutions to expand the issuance of medium- and long-term loans to the manufacturing industry, lifting sentiment to some degree, according to analysts.
The market has been expecting a raft of supportive measures to be announced at the politburo meeting to be held in late-July to spur the patchy post-pandemic economic recovery in China.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) ended daytime trading 4.11% higher at 824 yuan ($114.24) per ton, the highest since March 16.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $114.21 a tonne Tuesday morning, up 3.08%.
The remaining high level of hot metal output, coupled with the insufficient supply of steel scrap, provided relatively strong support to iron ore consumption, analysts at Huatai Futures said in a note.
BHP CEO Mike Henry urged the Chinese government to provide more help for the housing market, acknowledging recent data had been patchy.
“We do think there’s room for a little bit more policy that is supportive,” Henry told reporters in Brisbane.
While the central bank cut policy rates this month to aid the economy, investors expect more steps will follow, although it’s unclear if they’ll be enough to significantly revive growth.
“Once again, unbridled expectations of further stimulatory interventions are running rife,” said Atilla Widnell, managing director at Navigate Commodities Pte.
“We fully expect intermittent upside price shocks to emanate from overly optimistic China and iron ore bulls, though bears will likely use this as an opportunity to sell.”
(With files from Bloomberg and Reuters)
