Iron ore price rises on hopes for China’s rebound in Q3

The most-traded iron ore, for September delivery, on China’s Dalian Commodity Exchange ended daytime trade 7.1% higher at 711 yuan ($105.27) a tonne, after earlier hitting 723.50 yuan, its strongest level since July 14.

China will make “great efforts” to consolidate its economic recovery, particularly in the crucial third quarter, putting a priority on stabilizing employment and prices, state media reported on Friday after a regular cabinet meeting.

“The market is looking forward to the economy (rebounding) in the third quarter,” analysts at Zhongzhou Futures said in a note.

China’s economic growth slowed sharply in the June quarter, hit hard by covid-19 lockdowns that dampened overall demand and disrupted activity.

Chinese steel futures also extended their gains following reports that China was planning to set up a real estate fund that could be worth up to 300 billion yuan to support more than a dozen property developers.

(With files from Reuters)