Iron ore prices grew by 30% in 4 months after China reduced Covid restrictions

Posted on December 12, 2022   |  

The most-traded May iron ore contract on China's Dalian Commodity Exchange advanced 1.4% to 790 yuan ($113.37) a tonne, and since the start of November, Dalian iron ore prices grew by 30%.

The gradual restart of China’s economy via more flexible Covid-19 restrictions could push iron ore prices as high as $150 a tonne by June 2023.

Traders expect that the property sector is good for 40% of China’s steel consumption, and will see relief in policies at the Central Economic Work Conference scheduled for next week, where policymakers will examine goals for the new year.