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Iron ore price rises as China property optimism lifts mood

The iron ore price rose on Wednesday, rebounding after two days of losses, with news that China Evergrande Group has resumed work on some property projects bringing relief to a market worried about demand prospects in China.

The debt-laden real estate developer said on Tuesday it has resumed work on 631 pre-sold and undelivered projects as it looks to meet its delivery target for this year.

That follows other recent sentiment-boosting developments, including Industrial and Commercial Bank of China agreeing to offer 400 billion yuan ($57.41 billion) financing to support 10 real estate firms.

A persistent property sector weakness in China, alongside a local covid-19 surge that’s restricting economic activity, has prompted the World Bank to cut its growth outlook for the world’s second-largest economy and top steel producer for 2022 and 2023.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $113.60 a tonne Wednesday morning, up 3.1%.

The most-traded May iron ore on China’s Dalian Commodity Exchange ended daytime trade 3.6% higher at 829 yuan ($118.88) a tonne.

(With files from Reuters)

Source: MINING.COM – Read More