The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.69% higher at 879.5 yuan ($122.17) a metric ton.
However, the benchmark April iron ore on the Singapore Exchange slipped 1.23% to $114.2 a ton as of 0718 GMT. As widely expected, the Chinese government is targeting economic growth of around 5% this year, similar to last year, and announced plans to run a budget deficit of 3% of economic output compared to 3.8% last year, official reports showed.
It also plans to issue 1 trillion yuan in special ultra long-term treasury bonds, which are not included in the budget. “The government promised to issue ultra-long central government special bonds for the next few years, which is a positive surprise and should help mitigate concerns over local government funding shortages amid falling land sales and LGFV deleveraging,” analysts at Goldman Sachs said in a note. Market participants had been closely monitoring whether there would be more stimulus unveiled at the NPC to restore market confidence and prop up the economy, which will also potentially generate more consumptions for metals.
