这种关键钢铁原材料的价格在中国国内交易所和新加坡交易所均大幅上涨，新加坡是全球投资者的主要合约。Analysts believe that demand for steel may also rise, and policies to stimulate sales of new energy vehicles and energy-saving appliances may increase demand in the manufacturing industry.
China announced a series of measures last week, including lowering interest rates and easing conditions for home purchases, which prompted metal prices to respond, especially those closely related to China, such as iron ore.
The contract has not been traded since due to China's extended Golden Week public holidays, but Singapore Exchange futures closed at $108.24 per ton on Tuesday, up 15.4% from the previous trading day's closing price and 18.4% from the recent low of $91.38 on September 23.
The price of this key steel raw material has risen sharply on both the Chinese domestic exchange and the Singapore Exchange, and Singapore is the main contract for global investors.
China buys about 70% of the world's shipping volume, and the main exporters are Australia and Brazil.
Analysts believe that demand for steel may also rise, and policies to stimulate sales of new energy vehicles and energy-saving appliances may increase demand in the manufacturing industry.
As China's domestic policy encourages local governments to speed up project construction, infrastructure demand for steel is likely to rise.
Overall, this means that although last week's stimulus was the most significant so far this year, there are still doubts that it will lead to a significant improvement in physical demand for commodities.
Moreover, it is likely that even if China's domestic steel demand does improve after 2025, it will only lead to a shift to domestic consumption and a reduction in exports.
It is worth noting, however, that if investors maintain confidence in the long-term outlook, emotion-driven price increases (such as the current rise in iron ore prices) can last for a long time.
According to the latest report released by the China IoT Steel Logistics Professional Committee, in September 2024, the PMI for the domestic steel industry was 49%, up 8.6 percentage points from month to month, ending a three-month continuous month-on-month decline. The increase was quite obvious, indicating that the steel industry had bottomed out and rebounded.
Steel-related industrial chain enterprises:
Maanshan Iron & Steel Co., Ltd. (00323), Chongqing Iron & Steel (01053), China Oriental Group (00581), Angang Steel (00347), Tiangong International (00826)
