Steel mills in China are believed to be restocking material in anticipation of strong steel output and demand.
The country is currently in the process of building 10 million social housing units for low-income earners and it is this that is behind the demand.
An iron ore trader in eastern China’s Shandong province told Reuters: “Steel mills have increased their buying in the face of strong steel prices and output.”
As a result, iron ore prices are on the rise. The October contract on the Shanghai Futures Exchange was up to a two-month high this week, and was trading at 4,865 yuan ($753) per tonne this morning.