Benchmark iron ore prices in Singapore rose after hitting 2022 lows in the previous session, but the market was on track for a sixth straight weekly fall on worries about global demand prospects.
In top steel producer China, the steelmaking ingredient also rebounded from its lowest in more than six weeks on the Dalian Commodity Exchange, after traders initially shrugged off an unconfirmed report about an easing of COVID-19 curbs.
“We believe that this relaxation will not be enough to attract many foreigners to enter the country, as the quarantine period is still long,” ING analysts said in a note.
“However, once the reduction in the number of quarantine days begins, the likelihood of further reductions will grow, which bodes well for China’s growth next year.”
Iron ore’s losses this week partly reflect the gloomy demand outlook as China sticks with its zero-COVID policy despite its toll on the economy.
Benchmark November iron ore on the Singapore Exchange was up 1.6 percent at $91.25 a ton, after slumping to $89.20 on Thursday.
Dalian’s most-traded January iron ore rose 1.5 percent to 686 yuan ($94.68) a ton.
Spot iron ore has sunk to 11-month lows amid intensified steel production curbs in China.
The World Steel Association has projected a 2.3 percent contraction in global steel demand this year, citing recession risks and China’s COVID-19 curbs and property sector downturn.
Chinese steel prices also rebounded though gains were muted. “The market is temporarily lacking new themes to boost prices or boost market confidence,” Sinosteel Futures analysts said in a note.
