Chinese iron ore futures logged their fifth session of gains on Thursday to scale more than six-week highs, as steel mills replenished inventories ahead of holidays and ramped up production as the virus-hit economy gradually recovers. “Global (iron ore) shipments are relatively stable and the demand side is improving,” analysts with commodities brokerage Galaxy Futures .
Chinese iron ore futures touched 900 yuan ($135.00) per tonne for the first time in nearly six weeks and logged a monthly gain, as hopes of a recovery in demand rose after financial hub Shanghai was set to reopen its city from lockdowns. Officials in Shanghai announced an end to a two-month lockdown on Monday. .
Chinese iron ore futures touched a one-week low on Thursday as downstream demand remained muted, while investors fretted over cues that the world’s second-largest economy is contracting in the second quarter amid COVID-fuelled chaos. China is facing bigger economic difficulties than in 2020, with some indicators started to weaken sharply since March, Premier Li Keqiang .
Chinese steel futures flitted in a tight range on Wednesday, as COVID-19 lockdowns continue to dampen market demand despite a raft of recent stimulus measures to prop up an ailing real-estate market and the world’s second-largest economy. Regulators have pledged to keep credit growth stable in the property sector, and said would broaden tax credit .
Chinese coking coal and coke futures dropped around 5% on Tuesday, weighed down by expectations of higher supply and as demand from steel mills remained weak on thin profit margins. A cabinet meeting chaired by Chinese Premier Li Keqiang said on Monday said the country would take targeted steps to support the economy, ensuring energy .