At a closely watched briefing on Saturday, the finance ministry did pledge more help for the crisis-wracked property sector — a keystone of commodities demand in China — and heavily indebted local authorities, as well as hinting at expanded government borrowing.
But the measures weren’t accompanied by concrete spending proposals, which investors had hoped could run to as much as 2 trillion yuan ($353 billion).
Iron ore fell 0.8 per cent to $US105.40 a tonne in Singapore early on Monday morning. Futures of the steel-making material have been on a roller-coaster this year, climbing above $US140/t in January before sinking below $US90/t last month. The copper market in London has followed a similar trajectory, hitting a record north of $US11,000/t in May before retreating.
Metals had rallied in recent weeks after Beijing launched a barrage of monetary interventions to support growth. But commodities investors have clamoured for further measures on the fiscal side of the equation, which has a more direct impact on consumption of materials, and is needed to replace demand lost to China’s prolonged real estate slump.
