Iron ore futures in China today, 12 Jul’21, rose by 2.1% d-o-d after the government reduced the required reserve ratio (the amount of cash that banks must hold as reserves) by 0.5%. This fuelled a rally driven by concerns about output curbs in Chinese steel market. Steel futures on the Shanghai Futures Exchange (SHFE) hit an eight week high, as per reports. Closing prices of the most-traded iron ore and steel futures contracts:
- DCE iron ore futures Sept contract closed at RMB 1,188.5/t ($184) (+RMB 25.5)
- SGX iron ore futures Aug contract closed at $207.90/t (+2.95)
- SHFE rebar futures Oct contract closed at RMB 5,432/t ($839) (+RMB 4)
- SHFE HRC futures Oct contract closed at RMB 5,828/t ($900) (+RMB 33)
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