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Column: China stimulus ramps up optimism in industrial metals


LAUNCESTON, Australia, June 7 (Reuters) - The China economic stimulus machine is already firing up the prices of key commodities such as iron ore, steel and copper even if there remain some doubts about how rapid, and how effective, its boosting measures will be.


Benchmark spot 62% iron ore for delivery to north China , as assessed by commodity price reporting agency Argus, climbed to $145.85 a tonne on Monday, the highest in a month and 15.2% above the recent low of $126.60 on May 18.

London-traded copper contracts ended at $9,745 a tonne on Monday, the highest since April 29 and some 7.2% above the recent trough of $9,090 on May 12.


The price gains in these international benchmarks have been matched on China's domestic exchanges, with Dalian iron ore ending at 934 yuan ($140.45) a tonne on Monday, its best close this year and up nearly 20% from the recent low of 779.5 yuan on May 10.


Shanghai-traded steel rebar contracts climbed to 4,774 yuan a tonne on Monday, the most in a month and 7% above the recent low of 4,475 yuan on May 26.


The gains have much to do with a slew of stimulus measures announced by Beijing as it works to stimulate the world's second-biggest economy, which has stuttered in recent months amid a series of lockdowns in major cities as part of the zero-COVID strategy.


Read More at https://www.reuters.com/markets/commodities/china-stimulus-ramps-up-optimism-industrial-metals-2022-06-07/

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