Iron Ore Prices Rise Amid Chinese Demand and Real Estate Moves

Iron ore prices climbed for a second session on Wednesday, driven by Chinese market purchases and real estate support expectations.

The September iron ore contract on the Dalian Exchange rose 3.4% to 826 yuan ($113.67) per ton. In Singapore, the July contract increased 3.8% to $107 per ton.

Short-term demand for iron ore, crucial in steelmaking, remains robust. Iron ore is more cost-effective than steel scrap, another steelmaking material.

Transaction volumes at major Chinese ports grew by 9.3% from Monday to 1.09 million tons on Tuesday, as per Mysteel consultancy.

Beijing announced on Wednesday a reduction in the minimum down payment for first-time homebuyers to 20%.

Futures analysts, noted that investors are speculating on further economic stimuli expected in July.