The iron ore price has soared this week on expectations of a recovery in Chinese demand after the Beijing 2022 Olympics next month. The top steelmaker, China is expected to maintain production restrictions to ensure clean air during the Olympics.
The most active iron ore contract for May delivery on China's Dalian Commodity Exchange ended day trading at 717 yuan ($112.47) per tonne, up 4.1 percent, the strongest since October 27, with a session high of 717.50 yuan. .
According to Fastmarkets MB, 62 percent iron ore imported into North China was changing hands at $127.58 per ton during morning trade.
“After the Winter Olympics, there is an opportunity to relax the production limit (for steel),” Zhongzhou Futures analysts wrote in a note. said.
However, they said China could see a surplus of 15 million tons of iron ore this year, given the low demand for steel in the country's real estate sector and production controls to reduce emissions.
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