Iron ore price headed for the biggest weekly gain in three months as demand prospects brightened after covid cases eased in China, stockpiles fell and the country vowed to carry out policies to stimulate growth.
Chinese officials said Thursday they would accelerate refunds of value-added taxes and ensure that local special bonds — which are mainly used to fund infrastructure projects — are issued in a smooth manner.
Additionally, worries that movement curbs in Beijing may escalate into a full-blown lockdown didn’t materialize, lifting hopes that restrictions will be eased further.
New daily cases remained capped below 100 for the past three days and residents are starting to move around more freely in Shanghai, although mass-testing is mandatory in districts reporting new cases.
Benchmark 62% Fe fines imported into Northern China rose 0.6% Friday morning, to $141.95 per tonne.
“Global (iron ore) shipments are relatively stable and the demand side is improving,” analysts with commodities brokerage Galaxy Futures said.
However, the rise in iron ore prices could be limited, ANZ Research said in a note on Thursday.
“Constraints on steel output remain while easing regulations on the housing sector won’t solve its underlying issues. This may be as good as it gets,” it said.
(With files from Reuters and Bloomberg)