China’s Ministry of Finance (MOF) announced that in October this year China issued local government bonds of RMB 1.396 trillion ($0.2 trillion).
In the January-October this year, China issued special bonds of RMB 3.519 trillion ($0.5 trillion), which was particularly used in construction activities.
Meanwhile, China Banking Regulatory Commission stated that new bank loans of RMB 1.5 trillion ($0.2 trillion) have been given to infrastructure constructions in January.
At the same time, China will issue part of new local government bonds for 2024 in advance, ensuring the needs of local financing. Market players expect that China will likely issue RMB 2.7 trillion ($0.38 trillion) of new local government bonds for 2024 in advance, which will continue to be in favor of eastern regions who are in better financial position.
Steel and raw material futures have been fluctuating in a limited range and ended the day at higher level with rebar and HRC futures at Shanghai Futures Exchange adding 0.56 percent and 0.95 percent respectively since Friday. At the same time, further intervention of Chinese authorities in the iron ore prices has led to lower spot iron ore prices, which supported mills from the cost side a bit. Iron ore fines with 62 percent Fe have settled at $132.7/mt CFR, down by $2.05/mt since Friday.