China’s iron ore futures increased during Tuesday’s session as industrial production revived in the most populated country
May futures iron ore delivery grew in 1,5% on commodity stock exchange in Ta-lien, China. The increase was caused by optimism connected to industrial sector revival. Moreover, purchasing managers index rose to 52 points from February record low value, while analysts expected the index value to be only 45 points.
China’s iron ore repositories have declined to 121,25 billion tons within two weeks, the lowest value in last 8 months. Even though statisticians warn the turnover may not be definite, the data give us some hope. “Production of companies still did not return to their volumes before coronavirus pandemic outbreak,” warned National Bureau of Statistics of China.
Possible iron ore demand will depend on progress in the rest of the world. Yet, as many countries still fight against coronavirus pandemic and economies of key countries are isolated, many sectors were suspended. The situation could improve during summer.