18 November 2024 – Latest economic data from China suggests a welcome recovery in economic momentum. Particularly noteworthy is a stabilization in the real estate sector, which should also have an impact on iron ore prices. Nickel prices in Asia also showed a positive trend today.
In this Stainless Espresso
Positive signals from China’s economy
Current economic data from China indicate a welcome recovery in economic momentum. The extensive fiscal support measures are clearly beginning to take effect: In October, retail sales and production in the service sector grew by an impressive 4.8% and 6.3% respectively compared to the previous year. Infrastructure investments also increased significantly, rising by 4.3% in the first ten months of the year.
Particularly noteworthy is the stabilization in the real estate sector, which had long been considered a weak point. Both sales and prices showed initial positive trends in October. These developments underline the resilience of the Chinese economy and give rise to optimism that the recovery could continue.
Iron ore prices rise in Asia
Iron ore prices on the Chinese Dalian Commodity Exchange (DCE) rose by more than 1.8% on Monday. Iron ore futures also improved on the SGX, the Singapore Exchange. With an increase of almost 2.7%, they are even ahead of the futures on the DCE. Iron ore prices on both commodity exchanges are currently at around $100 per metric ton.
Analysts said today that short-term demand for the most important raw material for steel production from China remains strong and could rise even further. A further improvement in the Chinese real estate market in particular could support demand.
Nickel prices show a friendly start to the week
Following the change in nickel futures contracts on the SHFE and LME commodity exchanges last week, nickel futures in Asia were friendly on Monday, rising by more than 1.0%. Nickel prices on the European LME also recorded gains at the start of trading and are currently up by around 0.85%.
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