Iron ore price rises on hopes of Chinese stimulus measures

Iron ore price rose on Thursday as investors looked for Chinese government measures to uplift its economy reeling from a recent resurgence in covid-19 cases.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $152.25 a tonne during morning trading, up 1.06% compared to Wednesday’s closing.

The cabinet said on Wednesday China would use timely cuts to reserve requirement ratios and other policy tools to support the economy, as well as industries and small firms hit by the pandemic.

China’s commercial capital Shanghai has locked down its 25 million residents for almost three weeks as authorities attempt to contain the country’s biggest outbreak of covid-19 since the coronavirus was first identified in the city of Wuhan in late 2019.

The restrictions in Shanghai, and in other Chinese cities, are starting to ripple through global supply chains, with some factories being forced to close and delays increasing at ports.

Li Wentao, an analyst with Tianfeng Futures highlighted that some Chinese cities had recently relaxed their property sales policies.