Mainland prices on the iron ore complex in China rose on Tuesday, with the magical $100 per tonne number almost in sight. However, the most-traded October contract on the Singapore Exchange reversed early gains, and was down 1.1% at $96.85 a tonne at the end of the session.
This rally is due to in part to the PBOC cutting foreign exchange reserves ratio to support the ailing yuan – almost back to the 7 level against USD – and attempts to revive the COVID hit domestic economy with more stimulus.
Meanwhile, the four pillared BHP is trying to talk up iron ore’s prospect in a “post-carbon” world:
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