Mining

Iron ore price rises back above $100 as China steps in to ease property woes

On China’s Dalian Commodity Exchange, the most-traded September iron ore contract ended daytime trade 2.2% higher at 679 yuan ($100.63) a tonne.

Chinese regulators on Sunday urged banks to extend loans to qualified real estate projects and meet developers financing needs where reasonable, in their latest efforts to ease concerns triggered by a widening mortgage-payment boycott on unfinished houses.

A growing number of home buyers across China threatened to stop making mortgage payments for stalled property projects, aggravating a real-estate crisis that has already hit the economy.

“The rapid escalation in mortgage repayment refusals underscores the importance of policy support to revive housing buyers’ confidence and stabilize the housing price,” J.P.Morgan analysts said in a note.

Related Article: China plans iron ore giant to assert market control

China’s property sector accounts for about a quarter of the domestic steel demand.

(With files from Reuters)

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