Iron ore price rebounds as China’s exports grow

The most-traded iron ore contract, for September delivery, on China’s Dalian Commodity Exchange ended daytime trade 1.5% higher at 732 yuan a tonne, after earlier falling 3.9% to its weakest since February 28.

Chinese exports grew at their fastest pace in five months in June, while central bank officials said China will step up policy support for the battered domestic economy and ensure a favorable environment for recovery.

China imported 88.97 million tonnes of iron ore last month, easing by a modest 0.5% from 89.42 million tonnes in June 2021 amid weak demand from local steelmakers.

“(China’s) zero-covid strategy is raising concerns that even the huge fiscal stimulus package the government is preparing will have little impact on demand for steel and iron ore amid the ongoing restrictions,” said Daniel Hynes, ANZ senior commodity strategist.

(With files from Reuters)