Chinese commodity futures are charging higher on Monday, led by iron ore.
The most actively traded September 2016 iron ore contract in the Dalian Commodities Exchange (DCE) is currently sitting at 408.5 yuan, up an enormous 5.28% for the session.
It is now nearing “limit up” 6% for the session.
Coking coal futures on the DCE are also higher by 4.77% while rebar futures traded separately on the Shanghai Futures Exchange are also up by 3.88%.
At a time when other markets are crumbling, steel is looking unbelievably bullish.
Whether due to fundamental factors on the ground, or investors speculating that the UK Brexit fallout will increase the likelihood that Chinese policymakers will continue to roll out stimulus measures, is as yet unknown.
The bullish price action in Chinese commodity futures is certainly helping mining stocks with the ASX 200 materials index currently up by more than 2%.