a ton of iron ore was again quoted above US$ 150, with investors betting that the efforts of the China to meet the economic targets will drive demand. Supply concerns contributed to the advance.
China will strive to achieve key economic and social development goals this year and will maintain stringent climate control measures. coronavirus, said the president Xi Jinping in an article published on the front page of Diário Popular this Thursday.
Xi added that industrial development is a top priority for revitalizing rural areas. the markets of steel and iron ore are considered barometers of the country’s infrastructure plans and broader growth prospects.
Iron ore futures contracts are recovering from a tumble in the last month, reacting to industry data pointing to increased steel production in recent days and optimism around the Chinese government’s policies to sustain the expansion.
Prices may continue to rise in the near term as fewer shipments are arriving in ports this week, explained Liu Huifeng, an analyst at Donghai Futures.
According to her, good profit margins and low stocks of iron ore in steelmakers support consumption. Still, the increase in supply throughout the rest of the year and the high chance of cuts in steel production in the fourth quarter could hurt demand for ore, he adds.
Investors also expect a resumption of activity in China after the country managed to contain an outbreak caused by the delta variant.
Traffic was again intense and China’s second busiest port returned to operation on Wednesday, after two weeks of stoppage.
Futures contracts on the stock exchange Singapore they rose 4.9% to US$ 152.90 a ton. Prices are about to interrupt a five-week streak of losses. Iron ore prices also advanced in China, while steel futures contracts retreated.
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