The latest news showed that iron ore price has increased more than 2 % last Friday. Driven by China's new stimulus measures and strong demand, iron ore prices rose for the third consecutive week.
According to Fast Markets MB, in early trading, the benchmark 62 % of iron ore imported from northern China was fined USD 137.36 per ton, up 2.3 % from the closing price on Thursday.
“Benchmark iron ore futures on the Dalian Commodity Exchange, for May delivery, jumped as much as 3% to 762 yuan ($120.12) per tonne, the highest since October 13. They ended up 2.2% to 756 yuan a tonne, sending the weekly gain to 4.6%.”
“The recent recovery is premised on a market view that may well end up shaping commodity prices for 2022, namely that China is once again going to open up the stimulus taps to boost a flagging economic recovery,” wrote Reuters columnist Clyde Russell.
“If this is the case, then iron ore and metals stand to be the major beneficiaries, as well as coking coal used to make steel.”
Capacity utilization rates of blast furnaces at 247 steel mills across the country continue to recover and stood at 81.08% this week, up from 79.89% a week earlier, data from consultancy Mysteel showed.
“There is strong anticipation that steel production will resume in the medium term,” SinoSteel Futures analysts said but warned that short-term demand mainly comes from the Winter Olympics and pandemic-related restrictions.
Huatai Futures points out that China's recent monetary policy meets the requirements of the central government, and more policies are expected to support the world's second-largest economy.
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