Iron Ore Price Gains as China Cuts Interest Rate

 Tuesday May 12, 2015, 10:39am PDT

Mining.com reported that the price of iron ore price rose on Monday after China made the third interest rate cut in six months following a sharp drop in the country’s trade with the world in April.

As quoted in the market news,

"The benchmark 62% Fe import price including freight and insurance at the Chinese port of Tianjin added $2.00 or 3.3% to $62.50 a tonne according to data provided by The SteelIndex, a 10-week high.

The Metal Bulletin’s 62%-index at the ports of Qingdao-Rizhao-Lianyungang also continued to improve with the price climbing 1.6% to $63.02 a tonne. The rally in lower grade ore saw MB’s 58% Fe fines jumping to $54.17, the highest since January.

Year to date China’s imports of iron ore still show gains over record-breaking 2014

"A rally that began on April 16 seemed to run out of steam at the beginning of May, but today’s advance brings to 33% the commodity’s gains since the spot price hit record lows at the beginning of April. The price slumped 47% last year and entered 2015 above $70 a tonne.

Beijing’s decision to stimulate lending and make it easier for banks to provide credit by also cutting reserve requirements for financial institutions comes amid growing signs of a slowdown in the world’s second largest economy.

Click here for the full Mining.com report