Chinese steel and iron ore prices beat all records
Significant increase in sales and investments in real estate gives me hope. Over the past two months, market participants began to expect an improvement. In light of all the events they expect growth in construction activity.
The contract of purchase and sale of iron ore in China increased significantly. On Wednesday their price was five percent higher than the previous days. The reason for this was the significant increase in steel prices in recent years. They peaked for the past three years in connection with the policy of the authorities of Beijing. Lawmakers allocate funding for infrastructure and sale of real estate increase. Due to this, the demand for steel promises to be sustainable.
This week will be starting in a sharp recovery of the situation with iron ore. This, in turn, can raise the price of immediate sale of higher monthly minimum. However, this requires the intervention of standard futures contracts. The contract of sale in the form of futures needs to maintain the increasing momentum.
Cash investments in key capital of China at the end of winter has increased by almost 9 percent. The data submitted compared to the same period of the previous year. Key factors were an increase in real estate construction and infrastructure. They exceeded the growth rate in the past year, which amounted to little more than eight percent.
For training of the government of China to the fall election analysts believe that the situation will be positive. Investment in infrastructure will be considered due to the stimulating role.
The most active reinforcing contracts on the Futures exchange in Shanghai increased to more than five hundred U.S. dollars per ton. This is the peak of winter of 2014. The closure happened with a increase of almost 2 percent, to 3,600 yuan.
On Desnanskiy Mercantile exchange the price of ore increased by five and a half percent. It amounted to little more than seven hundred yuan per ton. A few days earlier she took a peak point in the last two weeks.
Li Keqiang, the incumbent Prime Minister of China, commented on the situation. He said that the second-scale economy in the world met with the internal and external risks in the current year. But he added that the country has a lot of solutions to the problem. These include, among others, are not enough policy instruments.
He also said that to projected economic growth this year will not be easy.