CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
Iron ore led metals higher with the key steelmaking material rising from its lowest close in a week and a half as investors mulled what China might do next to bolster its economy.
After swinging between gains and losses since Monday, iron ore is on course for a modest weekly drop. Muted steel demand during the peak-construction season is a key headwind, according to ANZ Group Holdings Ltd., which sees prices “finding a floor” near $95 a ton.
There are still hopes that China, the biggest metals consumer, will announce more measures to spur growth. The People’s Bank of China’s implemented a surprise rate cut last week, but the call for more measures is growing. State-run media ran front-page articles Wednesday saying the central bank is likely to ease monetary policy further.
On the supply side, iron ore shipments from Australia in the week to June 9 rose to 19 million tons, up 7% from the week before, according to Marcura data compiled by Bloomberg. That marks a second weekly increase, boosting volumes just as China braces for warmer, wetter weather that’s expected to further stifle steel demand.
Iron ore rose 1.1% to $111.95 a ton as of 3:25 p.m. in Singapore. There was no trading on Dalian’s exchange and in Shanghai, with Chinese markets closed due to public holidays.
Among base metals, copper added 0.1% to $8,612 a ton on the London Metal Exchange. Aluminum climbed rose 0.3% and zinc increased 1.1%.
(By Liz Yee Xing Ng and Annie Lee)
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