Create FREE account or log in

to receive MINING.COM digests

Iron ore price jumps on easing restrictions in China

Stock image.

The iron ore price rose on Monday buoyed by expectations that China would relax its strict covid-19 restrictions, lifting demand sentiment.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $110.61 a tonne Monday morning, up 3.4%.

Some communities in Chinese cities where covid-19 is still spreading are easing off on testing requirements and quarantine rules ahead of an expected shift in virus policies nationwide after widespread social unrest.

Meanwhile, China reported a slight dip in new daily covid-19 cases on December 1, the National Health Commission said.

Market sentiment has also been buoyed by China’s measures to support its struggling property sector.

These measures should have a better chance of developing into stronger demand for steel and iron ore amid a shift away from strict adherence to the zero-covid policy, ANZ said in a note.

China’s economy will keep growing at a reasonable speed with stable employment and prices, Finance Minister Liu Kun said in a speech at the ASEAN plus Three Economic Cooperation and Financial Stability Forum.

(With files from Reuters)