Iron ore price rose on Wednesday supported by stronger credit data from China.
New bank loans in China jumped more than expected in June, and total social financing data watched by analysts for clues to metals consumption exceeded expectations.
“China credit data has given the market a firmer tone, but there is caution ahead of US CPI,” a metals trader said. “China’s property sector is a concern.”
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $111.10 a tonne Wednesday morning, up 3.32%.
Iron ore price posted its worst day in 9 months on Monday amid slowing steel output.
Top producer Tangshan has ordered steel mills to curb output for all of July to combat worsening air quality.
China’s President Xi Jinping called for greater efforts to curb carbon dioxide emissions, a signal the country won’t backslide on climate targets even as it turns to fossil fuels for energy security.
There needs to be better regulation of energy consumption and a gradual shift toward “dual control” — typically the setting of specific targets — for both the total volume and intensity of carbon emissions, Xi said Tuesday at a meeting on deepening reforms, according to a transcript from Xinhua.
Even as it raises domestic oil and gas production, China needs to also accelerate the adoption of cleaner energy sources and gradually lower the share of fossil fuels, according to the transcript. China’s new power system will need to offer clean, safe, abundant supplies that are economically efficient, flexible and promote self-sufficiency, Xi was cited.
His decision to emphasize the country’s climate targets, which call for China to peak emissions before 2030 and hit net zero by 2060, is an indication Beijing will expect regions to maintain progress on curbing pollution.
(With files from Bloomberg and Reuters)
