Iron ore and coke in China began to rise in price, recouping a 5-day fall in prices

On Thursday, Chinese iron ore futures began to rise as higher steel prices helped restore commodity prices after a five-day drop.

Restrictions on steel production in northern cities in China during the winter have reduced demand for iron ore and lowered prices. Yet despite these restrictions, China's crude steel production hit a record 831.7 million tonnes last year, up 5.7 percent over the APAI, government data show. Other data released Thursday showed that China's economy grew 6.8 percent in the fourth quarter of 2018 from a year ago, outpacing market expectations. Commonwealth Bank of Australia analyst Vivek Dhar expects iron ore prices to rise as restrictions set in mid-November will be lifted by mid-March.

“While we expect iron ore prices to rise this quarter, price volatility should be significant,” Dhar said in a note.

The most traded iron ore contract for May delivery on the Dalian Commodity Exchange closed 1.4 percent higher at 537 yuan (roughly $ 83) a tonne. The contract hit a 2-week low of 525.50 yuan on Wednesday.

Coke climbed 0.7 percent to 1,966.50 yuan a tonne, while coking coal gained 0.2 percent to 1,276 yuan, both gaining support after a six-day drop.

Iron ore for delivery to the Chinese port of Qingdao fell 1.6 percent to $ 74.51 a tonne on Wednesday, the weakest level since December 29, according to data from Metal Bulletin.

On Thursday, rebar on the Shanghai Futures Exchange rose 1.1 percent to 3,849 yuan a tonne.