Iron ore price rose on Tuesday as hopes of a recovery in demand rose after financial hub Shanghai was set to reopen its city from lockdowns.
Officials in Shanghai announced an end to a two-month lockdown on Monday. The city will move into a normalized epidemic-control phase from Wednesday, allowing shops to reopen and people in “low-risk” areas to return to work.
The development could boost downstream consumption, which was halted for months due to the recent COVID-19 outbreak and had disappointed metals producers as they could not cash in on the traditional peak season for construction projects.
China’s factory activity declined slower in May from the prior month, though economic growth in the second quarter is still in doubt.
Benchmark 62% Fe fines imported into Northern China rose 0.3%, to $136.15 per tonne.
Chinese iron ore futures touched 900 yuan ($135.00) per tonne for the first time in nearly six weeks and logged a 2.6% monthly gain.
(With files from Reuters)