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Iron ore price jumps on easing restrictions in China

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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)