Iron ore price rises on China property support

Iron ore prices climbed on Tuesday propped up by China’s moves to ramp up support for struggling property developers.

China’s securities regulator will allow Chinese developers listed on the Hong Kong Stock Exchange and on Chinese stock exchanges to sell additional shares to acquire real estate assets, replenish working capital, or repay debts, lifting a ban on such refinancing.

The measures are the latest in a slew of steps taken to shore up the property sector that accounts for a sizeable portion of China’s steel demand, such as the 16 steps outlined by regulators to support the industry and the fund-raising support that China’s biggest banks have agreed to provide.

“(Such) favorable policies have created a good financing environment for real estate companies,” Huatai Futures analysts said in a note.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $101.60 a tonne Tuesday morning, up 2.8%.