Iron ore price rebounds after Chinese President pledges to meet development targets

Xi, speaking at the opening ceremony of the BRICS Business Forum via video link on Wednesday, called for greater coordination on economic policy to avoid a fragile recovery from being disrupted.

China would step up macro-policy adjustments and take more effective measures to achieve its annual economic and social development goals while minimizing the impact of the covid-19 epidemic as much as possible, Xi said, without giving details.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $116.30 a tonne, up almost 7% from Wednesday’s closing.

“The lack of growth in economic activity has seen steel demand suffer. This has led to a build-up in inventories, which is finally leading to a slowdown in steel production,” said ANZ senior commodity strategist Daniel Hynes.

The steel-making ingredient should recover to $140 a tonne in three months as it’s “highly exposed” to more Chinese easing, Citigroup Inc. analysts said in a note.

However, there could be more near-term weakness as investors digest news around steel output cuts and weak margins, they said.