Iron ore prices rose on Friday as a recovery in steel margins in China eased concerns over weak demand for the steelmaking ingredient.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $105 a tonne Friday morning, up 3.6%
On China’s Dalian Commodity Exchange, the most-traded January 2023 contract ended daytime trade 2.6% higher at 723 yuan ($107.18) a tonne.
“Fundamentals have improved marginally,” Zhongzhou Futures analysts said in a note, citing a rebound in steel margins that has prompted the restart of some of the idled blast furnaces in top steel producer China.
However, several such facilities remain shut, while those already restarted were not operating at full capacity as the recovery in Chinese steel demand remains slow.
The limited production has resulted in a steady decline in Chinese steel inventories.
(With files from Reuters)