Iron ore prices for 62% iron content cargoes dropped to around $104 on Thursday, reversing a two-day rally as investors awaited further stimulus announcements from China, the world’s largest consumer.
Iron ore prices fall as China stimulus looms
The National People’s Congress standing committee is deliberating on increasing local government debt to boost spending. Market sentiment was also shaped by concerns over the potential impact of Donald Trump’s US presidential election on China’s economy, particularly fears of additional tariffs. However, traders speculated that this could lead to more aggressive stimulus measures from Beijing to protect the economy.
China's trade surplus widens in October, boosting growth outlook
Meanwhile, October data showed China’s trade surplus widened more than expected, driven by a surge in exports and a decline in imports, offering some support to growth prospects.
