China’s steelmaking commodities surge on report of real estate relief plan, Dalian iron ore surges over 7%
China’s steelmaking commodities surge on report of real estate relief plan, Dalian iron ore surges over 7%

China’s steelmaking commodities surge on report of real estate relief plan, Dalian iron ore surges over 7%

 

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China’s steelmaking commodities stage a strong rally on Thursday, with the most-traded iron ore futures contract on the Dalian Commodity Exchange, for September delivery, surging more than 7% to hit 794 yuan per tonne as of 2:46 pm, local time.

The most -traded coking coal futures contract on the Dalian Commodity Exchange, extends gains to nearly 11% to hit 2,175 yuan per tonne. The September contracts of coke is also extending gains to nearly 8% to hit 2,858.5 yuan per tonne.

China reportedly plans to issuing 1 trillion yuan ($148.2 billion) in loans for stalled developments, according to the Financial Times on Thursday.

The People’s Bank of China (PBOC) will initially issue about 200 billion yuan of low-interest loans, charging about 1.75% a year, to state commercial banks, the FT said, citing people involved in the discussions. The plan, recently approved by China’s State Council, will permit banks to use the PBOC loans along with their own funds to refinance stalled real estate projects, the report added.