China unveiled its broadest stimulus package since the pandemic on 24 September 2024, giving an immediate lift to iron ore and steel prices. People's Bank of China governor Pan Gongsheng announced a 20 basis point cut in the seven-day repo rate to 1.5 percent and a 50 basis point cut in the reserve requirement ratio, unlocking about 1 trillion yuan of long-term liquidity, the first time both measures had been cut on the same day in a decade. Existing mortgage rates were cut by about 50 basis points, the minimum down payment on homes was lowered to 15 percent, and a 500 billion yuan swap facility was set up to help insurers, brokers and funds buy shares. The most-traded January 2025 iron ore contract on the Dalian Commodity Exchange jumped 6.23 percent on 24 September and rose again the next day to 709 yuan a tonne, while Shanghai rebar and hot rolled coil futures surged more than 4 percent on the day.
Source: Kpler — https://www.kpler.com/blog/chinas-fresh-stimulus-pushes-up-iron-ore-and-steel-prices
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