The price of iron ore rose to its highest level in two months, supported by China’s promise to reduce fierce competition and turbulent productive abilities, despite the poor expectations of demand in the steel market. The basic commodity rose by about 1.3% on Thursday before the profits shrink. The prices exceeded the $ 100 tonnes of barrier for the first time since May, powered by Signals from Beijing, which intends to eliminate the surplus of industrial production capacity, confirms with the aim of improving factory gain. Expectations on new motivational packages for the real estate sector have also contributed to promoting demand prospects. But these positive indicators came up with the issuance of data showing that China’s steel production scored the biggest decline in ten months in June, down 9.2% year -on -year to reach 83.2 million tonnes, which makes the production of the first half of the year since 2020. Why did the price of iron rise? “The prices of iron ore responded positively to the news of the repairs at the level of supply, as well as the hope of demand in the Chinese real estate sector,” said Vivic Dahar, an analyst at Komantolth Bank of Australia. But he pointed out the ongoing doubt as to whether the decline in steel production will continue until the end of the year, and how production policies will deal with possible incentives. Also read: Mining giants in dilemma after China’s demand for iron fell, the immediate iron ore price rose 0.5% to $ 100.40 per tonne at 10:33 p.m., Singapore, and future contracts on the Dalian stock exchange increased 0.8%, and steel contracts in Shanghai also increased.
The price of Iron contains the highest level in two months after the promises of China
