Iron ore price rises on hopes for China’s rebound in Q3

Iron ore price rose on Monday on hopes of an economic rebound for China in the third quarter, and support for the country’s troubled property sector.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $103.16 a tonne Monday morning, up 1.2%.

The most-traded iron ore, for September delivery, on China’s Dalian Commodity Exchange ended daytime trade 7.1% higher at 711 yuan ($105.27) a tonne, after earlier hitting 723.50 yuan, its strongest level since July 14.

China will make “great efforts” to consolidate its economic recovery, particularly in the crucial third quarter, putting a priority on stabilizing employment and prices, state media reported on Friday after a regular cabinet meeting.

“The market is looking forward to the economy (rebounding) in the third quarter,” analysts at Zhongzhou Futures said in a note.

China’s economic growth slowed sharply in the June quarter, hit hard by covid-19 lockdowns that dampened overall demand and disrupted activity.

Chinese steel futures also extended their gains following reports that China was planning to set up a real estate fund that could be worth up to 300 billion yuan to support more than a dozen property developers.