Iron ore futures, the most traded on the Dalian Commodity Exchange, for the week of February 17-24, 2023, rose 1.5% from the previous week – up to 909.5 Yuan/t ($131.2/t).
On the Singapore Exchange, March futures were also up by 1.4% – up to $128.5 a tonne compared to the price of February 17.
Iron ore prices rose on expectations that China will take additional measures to support the economy.
In March 2023, China hopes to announce further economic stimulus measures at the annual National People’s Congress session.
In addition, Chinese steelmakers are working to increase production capacity, as it raised in January 2023 by 2.3% compared to January of last year, reaching 79.5 million tonnes. Quarantine restrictions are eased with expectations of increased demand.
Real estate market Stability in China helped boost iron ore futures as house prices in China stabilized for the first time in 16 months, and new home prices rose for the first time in 12 months.
A positive outlook from one of the world’s largest miners, BHP, supported iron ore prices regarding steel demand.
In addition, a statement by South African company Kumba Iron Ore that it will cut raw material production for three years.