China is set to jolt iron ore off a six-month low after...

China is set to jolt iron ore off a six-month low after approving an estimated $US23 billion of steel projects that will use the raw material produced by mining companies such as Rio Tinto and BHP Billiton.

The commodity will climb to $US152 a metric ton in the second half, analysts say. The price declined to $US131 a ton yesterday, near year-lows reached on May 23. Coking coal, another key ingredient in making steel, may gain 7 per cent to about $US220 a ton, analysts forecast.

“Commodity prices are already close to the bottom and are set to rebound,” Henry Liu, an analyst at Mirae Assets Securities, said. “Real demand for steel depends on what incentives the government gives to drive investments.”