Iron Ore Surges as China’s Steel Mills Prepare to Restock
Workers pour molten steel at a foundry in Wuyi, China's eastern Zhejiang province.
Source: STR/AFP/Getty Images
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Iron ore futures in Singapore jumped nearly 10% as optimism over a bout of restocking by China’s steel mills added to tailwinds from the risk-on mood in global markets.
Prices rebounded from Friday’s pandemic-driven losses alongside a rally across commodities from nickel to crude oil on bets the impact of a new coronavirus variant may not be as severe as initially feared. As well as a broad recovery for risk assets, iron ore is benefiting from signs that pressure on China’s steel production is easing.