FXStreet notes that bulk commodities are leveraging China’s stimulus. Steel production has been surprisingly strong and improving steel mill margins should keep the output resilient in the short-term. A depleted iron ore stockpile is the other supportive factor. Nevertheless, a slowdown in land sales suggests demand from the real estate sector may soften, according to economists at ANZ Bank.

“Infrastructure-led stimulus measures continue to boost steel and iron ore demand. China’s steel production has been robust and this has seen a strong drawdown in iron ore inventories.”

“Steel margins are rising steadily, which should support steel production in the short-term. However, we have seen a material fall in land sales, signalling demand from the real estate sector may be soft in coming “quarters.” 

Iron ore supply issues are easing in Brazil as reflected in rising exports from the country. Australian exports have been decelerating, while Indian exports rose more than 70% recently.”