Iron ore prices soared as China replenished its stockpile despite steel restrictions.
Despite the expected decline in steel production due to emissions cuts, iron ore futures have climbed above $110 per metric ton this week as Chinese steelmakers replenish their stocks ahead of the public holiday on October 1.
Iron ore futures on the Singapore Exchange fell 5.12% to $112 per ton on Tuesday, Sept. 28, but prices have rebounded from $94 per ton seen last week. Iron ore futures on the Chicago Mercantile Exchange (CME) rose 0.11% to $120.23 per tonne.
Prices slumped to $94-$95 last week amid growing fears that the debt crisis facing Chinese real estate giant Evergrande will cause a slump in the country's real estate sector and reduce demand for industrial metals, including steel.
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