Iron Ore Price Gains as China Cuts Interest Rate

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.

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