Issue 47, 2023 - This week's editorial: Iron ore prices remain strong as China hopes for 2024 economy performance recovery

The seaborne iron ore market was sideways at the beginning of last week but rebounded quickly late in the week. Beijing held aPolitburo meeting last Friday to study economic policies for 2024 and market players speculated on the commodity market.

The Kallanish KORE 62% Fe index and the KORE 65% Fe index rose by $0.29/t and $0.27/t respectively to $136.49/dry metric tonne cfr Qingdao and $148.63/dmt cfr. The KORE 58% Fe index, meanwhile, was $0.17/t lower at $124.23/dmt cfr.

On the Dalian Commodity Exchange (DCE), the most-traded May 2024 iron ore contract increased by CNY 17.5/t ($2.44/t) to CNY 958.5/t ($133.76/t). On the Singapore Exchange, December 62%Fe futures and 65% Fe futures settled $1.62/t and $1.24/t higher respectively at $135.52/t and $148.05/t.The same contract for 58% Fe futures was however unchanged at $121.24/t. Tangshanbillet rose by another CNY 40/t to CNY 3,710/t.

At the Politburo meeting, China confirmed its economic performance this year has begun to accelerate. Especially after the Covid-19 lockdown policy officially ended at the end of 2022, Beijing tried to save the economy from the verge of collapse and navigate the real estate industry crisis using a number of fiscal and monetary policies.

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