Iron ore price jumps as China vows to stabilize economy

The iron ore price rose on Monday as a pledge by the Chinese government to focus on economic stability next year bolstered demand outlook.

China pledged to continue its prudent monetary policy and proactive fiscal policy, and to prioritize economic stability in 2022, according to the annual Central Economic Work Conference last week.

“The main factor to affect iron ore prices will be demand, which is more flexible pending the property market policy.”“The supply-side of iron ore is not expected to see a big change next year, with shipments from mainstream miners to remain stable while output from domestic mines will see little change,” said Cheng Peng, an analyst with SinoSteel Futures.

Benchmark iron ore futures on the Dalian Commodity Exchange, for May delivery, closed 5% higher at 669 yuan a tonne after rising as much as 5.9% to 674 yuan ($105.93).

Iron ore futures in Singapore soared as much as 7.2% to $116.15 a tonne.