The iron ore price rose on Wednesday, rebounding after two days of losses, with news that China Evergrande Group has resumed work on some property projects bringing relief to a market worried about demand prospects in China.
The debt-laden real estate developer said on Tuesday it has resumed work on 631 pre-sold and undelivered projects as it looks to meet its delivery target for this year.
That follows other recent sentiment-boosting developments, including Industrial and Commercial Bank of China agreeing to offer 400 billion yuan ($57.41 billion) financing to support 10 real estate firms.
A persistent property sector weakness in China, alongside a local covid-19 surge that’s restricting economic activity, has prompted the World Bank to cut its growth outlook for the world’s second-largest economy and top steel producer for 2022 and 2023.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $113.60 a tonne Wednesday morning, up 3.1%.
The most-traded May iron ore on China’s Dalian Commodity Exchange ended daytime trade 3.6% higher at 829 yuan ($118.88) a tonne.
(With files from Reuters)