Iron ore prices rose on Tuesday on renewed optimism around China’s reopening.
Benchmark 62% Fe fines imported into Northern China rose 1.55%, to $131.57 per tonne, the highest since June 2022.
The most-traded May iron ore on China’s Dalian Commodity Exchange ended daytime trade 3.4% higher at 919 yuan ($133.80) a tonne. It earlier hit 922 yuan, the strongest for the Dalian-traded commodity since July 2021.
On Tuesday, BHP Group flagged a brightening demand outlook in China.
BHP’s confidence in China’s economy was buoyed by green shoots since the start of the calendar year, including new loans, house prices, and business sentiment surveys, CEO Mike Henry said.
“There’s a lot there that is giving us confidence that we will see an acceleration in the Chinese domestic economy,” he told reporters on a conference call.
“Fragile shoots of an emerging Chinese steel demand recovery appear to be slowly developing strong roots, as bullish high-frequency data extended into a second consecutive week,” Navigate Commodities Managing Director Atilla Widnell said in a note.
“If this trend extends for a third consecutive week – and there’s little to suggest otherwise – this should continue to reinforce the renewed optimism around China’s reopening narrative.”
Rebar on the Shanghai Futures Exchange climbed 2.1%, hot-rolled coil gained 1.4%, wire rod rose 3%, and stainless steel added 1.6%.
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(With files from Reuters)