X - Iron ore bounces as China steel hub lifts some COVID restrictions

Rio Tinto (NYSE:RIO), BHP (NYSE:BHP) and Vale (NYSE:VALE) all jump ~5% in Wednesday's trading, with iron ore futures rising for a second day after falling nearly 10% Monday on concerns over the impact of China's worsening COVID outbreak. Steel producers also are moving higher, including (MT) +5.5%, (CLF) +4.3%, (X) +2.9%, (RS) +2.8%, (STLD) +2.4%, (NUE) +1.8%, (CMC) +1.7%. A key Chinese steel hub in Tangshan eased some virus controls and President Xi Jinping's pledge to boost infrastructure spending aided demand prospects, Bloomberg reports. "Market sentiment has improved but the COVID impact on downstream demand still needs to be closely monitored," Holly Futures said, according to Bloomberg, adding that the destocking of iron ore inventories at ports seems to be continuing. Alcoa shares trade ~5% higher as aluminum prices rebound on the back of China's infrastructure push.

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Iron ore bounces as China steel hub lifts some COVID restrictions