Industrial metals bid to the boots, Iron ore limit up

The industrial metals complex has seen heavy demand in Asian trade, with Iron ore futures limit up, as the market prices in expectations of faster growth in China, given the recent credit growth in the country.

Some reports suggests that Chinese bank loan growth, which soared to a new record in January, not only was due to Chinese NY Holidays, but MNI notes that “bank officials in a number of Chinese cities say February new loans look to be just as strong, even with a week-long holiday in the middle of the month.”

The news imply that the Chinese government may have embarked upon a more aggressive lending program to finance government projects, which should benefit industrial metals and as a result, should also keep the a strong bid tone in the Australian Dollar, which is traded as a proxy for China amid difficulty to trade the Yuan.