Major iron ore producers such as BHP Group and Rio Tinto said this week they have seen signs of a rebound in Chinese demand after Beijing dismantled COVID-19 restrictions and rolled out supportive measures for struggling property developers.
A brightening outlook for top steel producer China had lifted the Dalian and Singapore iron ore benchmarks past the $120-$130 trading range they had been confined to for weeks. Spot prices were also higher this week as Chinese steel mills further ramped up their production.
“Steel mills were said to be preparing for a busier construction season in the next quarter with steel output up 6% in early February,” Westpac analysts said in a note.
The blast furnace capacity utilization rate among 247 Chinese steel mills under Mysteel’s regular survey climbed for the seventh consecutive week to 86.97% over Feb. 17-23, up by 1.22 percentage points on week, the industry information and consultancy provider reported.
