The news that restrictions on housing purchases may be eased due to the revival of the real estate sector in China, on the one hand, and on the other hand, increased optimism about the recovery in global demand for steel products, especially in East Asia, on a world basis, led to a significant increase in the price of iron ore in China. It also led to an increase in the prices of long products such as rebar as well as iron ore. China's largest steel producers are planning new measures to increase demand for construction products by supporting the real estate market. In addition, the government will soon implement new support packages to prevent stagnation in this sector. Reducing restrictions on the purchase of housing units is one of the contents of the support package. However, the market analysts' view is that the demand for steel and iron ore will not be like pre-Covid-19 in the short term.
Iron ore price reached the highest price level in the last two months. The price of 62% grade iron ore for delivery to the northern Chinese port of Tianjin reached $110/t, rising by 2% on the week and 6% on the month. The price of rebar on the Shanghai Stock Exchange reached around $520/t, increasing by 2% on the week and more than 4% on the month.
According to trade statistics, iron ore imports increased by more than 4% from the same period in 2022, providing steelmakers with a promising outlook for purchases.
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