HANOI: Iron ore futures rebounded on Thursday as higher imports into China suggested improving demand, and the country’s easing Covid restrictions also boosted further consumption hopes.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange advanced 0.5% to 783 yuan ($112.25) a tonne.

Dalian iron ore prices have risen about 30% since the beginning of November, boosted by China’s ramped-up policy support for ailing domestic property developers and easing of its Covid-19 curbs. China on Wednesday announced the most sweeping changes to its resolute anti-COVID-19 regime since the pandemic began three years ago, allowing infected people with mild symptoms to quarantine at home and dropping testing for people travelling domestically.

Data also showed Chinese imports of iron ore rose 4.1% in November from the previous month as buyers stocked up before the end of the year, in anticipation of Beijing’s measures to support the struggling property market.

ANZ analysts said the data indicated signs of rising demand. On the Singapore Exchange, the steelmaking ingredient’s front-month January contract was up 1.6% at $107.75 a tonne, as of 0446 GMT.

“Beijing’s gradual Covid-19 easing and policy support for the beleaguered property sector has boosted market sentiment, lending support to iron ore prices,” Citi analysts said in a note on Tuesday. They raised their 0-3-month price forecast to $120 a tonne, from $110 a tonne previously.

“In a bullish scenario, iron ore prices could rally towards $150 a tonne if China announces meaningful credit easing over the next 3-6 months and/or an accelerated reopening.”