The iron ore price rose on Thursday fuelled by hopes of recovering steel production in China after stringent curbs in the first 11 months of the year.
The world’s top steel producer churned out 946.36 million tonnes of the metal from January to November, down 2.6% from the same period last year.
“Since targets for crude steel output have now been met, some mills are resuming production and profitability is relatively good,” Huatai Futures wrote in a note.
A government consultancy on Wednesday predicted that China’s steel demand could dip in 2022 from this year, but added consumption from infrastructure construction, automobile and other sectors will continue to offer support.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $116.06 a tonne during afternoon trading, up 4.5% compared to Wednesday’s closing.