Iron ore futures steadied as investors focused on measures in China to shore up economic growth, as well as the outlook for demand.
The People’s Bank of China recently vowed to deploy “more powerful” policies, without giving further details on what measures it will use, and key government meetings starting next week may approve more debt sales among other measures.
Top leaders have previously pledged to widen the fiscal deficit and sell more infrastructure bonds in an effort to stabilize the economy. On Thursday, China was seen to drain liquidity from the banking system even as lenders come under pressure to handle higher demand for funds.
Investors will also look to Friday’s release of Chinese industrial production, with expectations that steel output may increase as industrial activity picks up.
(Bloomberg)