Imported Iron Ore Prices at Chinese Ports Fell on Demand Shock, But then Rallied on Positive Developments

SHANGHAI, Mar 3 (SMM) - In order to tackle heavy air pollution, many cities in Hebei province have ordered steel mills to reduce their sinter operations by 30-50% since February 25. This threatened iron ore demand and sent its prices lower. However, China’s manufacturing PMI released by the National Bureau of Statistics far exceeded expectations, which boosted market confidence in the economic recovery after the Covid restrictions have been lifted. Moreover, steel inventory continued to fall this week, and the apparent demand for rebar once again increased to around 3.1 million mt per day, buoying up iron ore prices in the futures and spot markets.