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China Daily Website

Investment projects boost imported iron ore prices

Updated: 2012-09-19 16:40
( Xinhua)

BEIJING -- The prices of imported iron ore at 25 major ports in China increased during the week ending on Sept 17 from the previous week, boosted by a slew of infrastructure projects in China and a new round of quantitative easing by the United States, according to an iron ore price report released by the Xinhua News Agency on Tuesday.

The price index for 63.5-percent-grade iron ore imports rose 15 points to 109 points, while the index for 58-percent-grade imports was up 14 points to 89, the report said.

Furthermore, iron ore stockpiles stood at 101.51 million metric tons, down 370,000 metric tons week on week, according to the report.

The report said the price rebound far exceeded market expectations due to investment projects announced earlier this month by the country's top economic planner. Authorities approved 55 investment projects worth 1 trillion yuan ($157.7 billion) to build highways, ports and railways across the country.

Meanwhile, the announcement of a third round of quantitative easing by the US Federal Reserve also boosted prices, industrial analysts said.

However, they said the rebound may disappear in the near future, as steel product prices remain low and market demand has yet to improve.