The iron ore price hit a fresh six-month high on Thursday, propelled by brightening demand prospects in China.
As the Chinese economy faces risks from rapidly spreading covid-19 infections and a bleak outlook for global growth, policymakers are aiming to boost the scale of consumption and investment, the official Xinhua news agency said on Wednesday.
Boosting domestic demand will help China to pursue higher-quality economic growth and cope with external risks, Xinhua said, citing the 2022-2035 plans issued by the cabinet.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $112.71 a tonne Thursday morning, up 2.5%.
The most-traded May iron ore on China’s Dalian Commodity Exchange ended daytime trade 3.2% higher at 830 yuan ($119.05) a tonne. It earlier touched 832 yuan, the highest since June 15.
“The accelerated implementation of plans to stabilize the economy (and) the optimization of epidemic prevention policies… have boosted market sentiment,” Zhongzhou Futures analysts said in a note.
China’s November steel output, meanwhile, fell 6.5% from the previous month, as some steelmakers cut production to curb losses amid persistently weak demand.
(With files from Reuters)