Iron ore hits US$100 per tonne lifting Rio Tinto, Fortescue
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The news: The iron ore futures index on the Singapore exchange went over USD100 per tonne on Wednesday as attitudes on Chinese economic growth improved, helping lift ASX-listed mining majors out of losses despite a sector wide sell-off.
The numbers: At 3:59pm AEST Fortescue shares had lifted 0.4% to $16.85 and Rio Tinto shares had lifted 0.5% to $110.80 even though both stocks spent most of the day in the red. BHP shares however had slipped 0.7% to $39.10.
The iron ore futures index on the Singapore exchange hit a high of USD100.20 earlier in the day and was sitting at USD99.75 by the time the ASX reached market close.
The context: Chinese officials have been pledging to fight excessive competition over the past few weeks and deliver policy support for the property sector.
According to Xinhua News Agency, Chinese President Xi Jinping said the government would “steadily advance renovation of urban villages and dilapidated houses” at a Central Urban Work Conference held on Monday and Tuesday.
Meanwhile, Rio Tinto announced on Wednesday a strong quarterly production update and that it has brought forward the expected first shipment from a massive iron ore mine in Guinea to November.
