Iron ore prices set for yearly gain, stimulus expectations persist
Iron ore has rallied in recent weeks amid stimulus measures from China to revive its flagging economy and property market.
IGTV financial analyst Angeline Ong looks at why analysts expect iron ore prices to continue to climb in the first half of 2024.
(AI Video Summary)
Iron ore prices set to keep rising into 2024
Iron ore prices have been skyrocketing and are predicted to keep rising in early 2024. Why is this happening? Well, China is working hard to revive its property sector, and that's really good news for the iron ore market. Even though there has been a slight dip in the Dalian iron ore futures recently, experts believe that it will bounce back and increase by more than 7% for the month. In fact, this would be the fifth consecutive month of gains! If China's central bank continues to make adjustments to support the economy and help the property sector grow, we could see even bigger price jumps for iron ore.
Now, why does all of this matter? The performance of iron ore is super important because people are closely watching China's reopening and the chance of prices going down. Since China is the second-largest economy in the world, any changes in their economic policies and industries, like property and construction, impact the global commodity markets. So, the fact that iron ore prices are going up shows that there's a lot of optimism and a potential for growth in China's economy.
Chinese property sector's impact on iron ore demand
Speaking of construction, China's property sector plays a huge role in driving the demand for iron ore because it's used a ton in building. The Chinese government's efforts to boost the property market have created a positive outlook for iron ore prices. If the central bank keeps implementing measures to support the property sector and economic growth, then we can expect iron ore demand to go up and prices to keep rising.
Overall, things are looking pretty great for iron ore prices, thanks to China's focus on reviving its property sector. Traders are keeping a close eye on any changes in policies and any potential stimulus to figure out what's going to happen next in the commodity market. As China's economy keeps recovering and growing, the demand for iron ore will likely stay strong, leading to more price gains in the months to come. So, it's definitely a market to keep on your radar.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
Live prices on most popular markets
- Forex
- Shares
- Indices
