The price of iron ore rose further on Monday after last week’s strong rally. The further easing of the corona measures in China continued to provide optimism about a pick-up in economic activity and demand for steel in China.
Beijing’s strict corona policy, which forced many factories to remain closed or run at half power, previously put pressure on the steel demand.
The price of iron ore rose by 0.7 percent in Singapore to USD 143.75 per tonne. Last week, the raw material became more than 7 percent more expensive and the price shot through the 140 dollars per ton. That was the largest weekly profit in thirteen weeks. In May, the price fluctuated around USD 130 per tonne.
After many construction and infrastructure projects have been put on hold due to lockdowns in major Chinese cities, traders expect Beijing to ramp up infrastructure spending and catch up, boosting steel demand. Iron ore inventories in the major ports have also fallen to their lowest level in eight months.
