Iron ore price rises despite lockdown on China steel hub

The iron ore price rose on Wednesday despite the decision by top steelmaking city Tangshan to implement a temporary lockdown.

The Tangshan government implemented the lockdown on Tuesday to avoid further cases of covid-19 as infections surged, the local government said in a statement.

“Although consumption for steel products are relatively sluggish, production is also falling,” analysts with Huatai Futures wrote in a note.

The situation of tight raw materials inventories has not been reversed yet, which could further sustain steel prices, analysts added.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $145.49 a tonne on Wednesday, up 1.4% compared to Tuesday’s closing.