Singapore iron ore futures have surpassed $US100 per tonne, reaching a one-month high. The key steelmaking material saw prices climb 1.4 per cent to $US100.20 per tonne, a level not seen since February 5 when it dipped below the $US100 mark. This increase coincides with China’s commitment to sustain fiscal stimulus measures aimed at bolstering economic growth amid internal pressures and escalating geopolitical uncertainties.
China, a major consumer of iron ore, has established an annual economic growth target ranging from 4.5 per cent to 5 per cent. This marks the country’s most conservative expansion goal since 1991. Despite this moderate target, China intends to maintain its fiscal stimulus efforts to support economic growth amid domestic challenges and growing geopolitical risks. The budget deficit is expected to remain around 4 per cent of gross domestic product this year, consistent with the record level set in 2023.
In related news, Australia and Canada formalised new agreements concerning critical minerals. Together, these two countries account for over 40 per cent of global iron ore production. The Australian mining sector experienced mixed results on the ASX. Fortescue Metals Group, a global leader in the iron ore industry, rose 1.8 per cent, and Mineral Resources gained 1 per cent. Rio Tinto, a leading international mining group, saw a modest increase of 0.5 per cent. BHP experienced a decline of 1.4 per cent as it traded ex-dividend.
