Dalian and Singapore iron ore futures rose on Tuesday after China said it has seen the peak of COVID-19 infections in many regions, adding to the optimism over the drastic easing of pandemic restrictions in the world’s biggest steel producer.
Fears of regulatory intervention to control prices, however, capped gains for the steelmaking ingredient.
Iron ore’s most-traded May contract on China’s Dalian Commodity Exchange rose as much as 1.8 percent to 844 yuan ($124.75) a ton.
On the Singapore Exchange, the steelmaking ingredient’s benchmark February contract climbed by up to 2.5 percent to $119.95 a ton, the highest since early-June.
A Health Times compilation of reports from local government officials and health experts across China suggested the COVID-19 wave may be past its peak in many regions.
But while the overall mood was positive, traders were still cautious after China’s state planner pledged to ramp up efforts to regulate prices and crack down on “malicious” market speculation.
The National Development and Reform Commission issued the warning on Friday after it noticed a recent sharp rise in iron ore prices.
