Leap in iron ore

Iron ore prices rose rapidly due to new incentives from China.

On the first trading day of the week, iron ore saw a premium of more than 10 percent. Prices per ton rose above 110 dollars.

The governments of Shanghai, Guangzhou and Shenzhen had decided to relax rules after Beijing’s latest efforts to support the struggling real estate sector.

Guangzhou became the first first-tier city to lift all restrictions on homebuyers. Shanghai, China’s financial center, and the southern city of Shenzhen, known for its tech industry, announced they were lowering the minimum down payment rates for first and second homes to 15 percent and 20 percent, respectively.

China’s central bank also announced on Sunday that it would allow refinancing of mortgages.

“China’s stimulus measures are much stronger than expected, and there are expectations for more fiscal measures,” said Steven Yu, a researcher at Mysteel.

“The iron market is in the middle of its traditional peak season and rebar has seen rapid destocking,” Yu said, referring to rebar, one of the most common steel products.