China plans $720B infrastructure investment, but iron ore still oversupplied

China plans to invest CNY4.7 trillion ($720 billion) on 303 transport infrastructure projects over three years but that may not be enough to give a strong boost to commodity prices in an oversupplied market.

On the back of expectations for infrastructure construction and a strong property market, iron ore prices have rallied as much as 86 percent from its record low in December, although prices have eased somewhat in recent days.