Iron ore price rebounds after Chinese President pledges to meet development targets

China would step up macro-policy adjustments and take more effective measures to achieve its annual economic and social development goals while minimizing the impact of the covid-19 epidemic as much as possible, Xi said, without giving details.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $116.30 a tonne, up almost 7% from Wednesday’s closing.

“The lack of growth in economic activity has seen steel demand suffer. This has led to a build-up in inventories, which is finally leading to a slowdown in steel production,” said ANZ senior commodity strategist Daniel Hynes.

The steel-making ingredient should recover to $140 a tonne in three months as it’s “highly exposed” to more Chinese easing, Citigroup Inc. analysts said in a note.

However, there could be more near-term weakness as investors digest news around steel output cuts and weak margins, they said.

(With files from Reuters and Bloomberg)