The price of iron jumps thanks to a dam project in China and limiting surplus production

Both iron and steel ore trading in four months near their highest levels, supported by China’s announcement of a plan to build a giant dam in the Tibet region, which strengthened demand expectations, as well as Beijing’s efforts to reduce production capacity, which contributed to promoting the confidence of the market. The price of iron ore used in the steel industry in Singapore has climbed to about $ 104 per tonne, after a wave of weekly profits lasting four weeks, and its highest level since last February has briefly touched. The future weapons contracts in Shanghai have also jumped to their highest levels since March last year. At the London Metal Stock Exchange, copper prices also rose. The China Electricity Generation Dam launched Prime Minister Lee Qiang yesterday the construction of the 1.2 trillion Yuan ($ 167 billion) at the Yarlong Zango River. The project, which consists of 5 consecutive dams, is expected to form a positive economic group of building materials, including minerals, cement and glass. China begins with the creation of a giant dam that threatens to increase the tension with India. More details here are raw iron ore to achieve the first monthly profits since last January, in the light of Beijing who continued his campaign to reduce the excessive competition and surplus production capacity in the steel industry, strengthening expectations in improving the margins of factory profit and high prices of raw materials. Steel businesses are expected to take advantage of the new project, at a time when they are still suffering from an extensive real estate crisis. Iron ore jumped 4% to $ 104.80, which is the highest level since last February, before reducing some profits and trading by $ 3:34 pm by $ 103.55. The reinforcing steel contracts and the warm wrapped in the hot in Shanghai increased by about 2%. On the London Stock Exchange, buyer rose 0.9% to reach 9867 dollars per tonne, and zinc and aluminum recorded extra profits. In Chengzhou, the future contracts for glass and soft drinks also jumped. China’s restrictions on production, although the large dam project in Tibet increases the market moral, the most important factor behind the high prices of iron material is still expectations about tightening its procedures to combat the surplus production capacity, according to the analyst grazing of the company “China Industrial Futures”. She continued: “Attempts to combat surplus production capacity will support steel prices and the sector’s profitability, and therefore also support iron ore prices.” Read more: China: Strict measures to counteract the surplus of steel and fuel production, the ‘Chinese Iron and Steel Association’ said last Friday that he held a meeting with the most important steel producers and head of the steel division with the Ministry of Industry, as the participants promised to strengthen the efforts to reduce the most famous as a is. The association added that China will also study the establishment of a new system to limit the surplus production capacity, without providing more details. At a press conference held last Friday, the Chinese Ministry of Industry and Information Technology announced that the country will introduce a new round program to support growth, which includes getting rid of the surplus of outdated production capacity in ten main industries, including steel, non -iron minerals, petrochemics and building materials.