Iron Ore Advances to 4-Month High

Prices for iron ore cargoes with a 63.5% iron ore content for delivery into Tianjin rose to $110 in December, the highest since mid-August, as eased Covid curbs and measures to stimulate the economy in top consumer China increased expectations for higher demand.

Key Chinese cities lose lockdown rules after protests, raising hopes that other industrial hubs would follow.

Also, the country’s largest commercial banks agreed to extend $162 billion in fresh credit lines to private developers to fight the sector’s liquidity crunch, and the PBoC further cut banks' reserve requirement ratio.

Earlier, the national bond authority expanded a key financing program by $35 billion to support the sales of bonds after a period of defaults increased the cost of credit for residence builders.

Still, prices are 33% below their March peak as concerns are still in place about the debt-ridden property sector in China and as supply from Ukraine remains steady despite the war.