Wuhan Iron and Steel (WISCO) has agreed to invest $180 million in South Australian iron-ore junior Centrex Metals, raising hopes that Asian steel makers are still prepared to invest in Australia's struggling resources sector.

Steel prices and consumption have collapsed in China and steel makers have pulled back from contracts to take ore from existing mines in Australia. But Centrex is confident that state-owned WISCO will honour an agreement to acquire half of its magnetite projects in South Australia, because of a longer-term need to secure supplies of raw materials.