Base metals were mixed after a gauge of US manufacturing tumbled to the lowest in more than two years in September, easing concern the Federal Reserve will tighten monetary policy too much. U.S. jobs data due this week may provide further clues on the rate-hike trajectory. Copper was steady at $7,509 a ton on the London Metal Exchange, aluminum rose 1%, while zinc fell 1.1%.
Iron Ore rises on optimism worst of China property slump over
Iron ore advanced — after dropping the most in a month in the previous session — on speculation China will ease virus curbs and take more steps to revive its property market.
Chinese real-estate stocks rose in Hong Kong on Monday on optimism the worst of the slump is over after Bloomberg reported that regulators told the biggest state-owned banks to provide financing worth at least $85 billion to the sector.
The steel-making ingredient has almost halved from a peak in early March due to the property crisis as well as frequent virus lockdowns around China stemming from Beijing’s strict Covid Zero policy.
A sustained recovery in China’s infrastructure activity, as well as a soft landing for the construction sector, remains contingent on a relaxation of Covid Zero, Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, said in a note. While it’s unlikely that a complete reversal of the policy will take place at the National Congress on Oct. 16, a gradual easing is on the cards, he said.
Iron ore rose 1.3% to $93.45 a ton in Singapore as of 10:47 a.m. local time after falling 3.4% on Monday. Chinese markets are closed for the Golden Week holidays.