FX.co ★ Iron Ore Rallies to Near 5-Month High

Iron ore futures surged beyond CNY 800 per tonne on Monday, marking their highest point in nearly five months due to robust governmental interventions by Beijing aimed at curbing excessive steel production and addressing industrial overcapacity. These strategic initiatives have enhanced profit margins for Chinese steel manufacturers, thereby encouraging increased production and fueling higher demand for iron ore. Concurrently, on the supply front, exports from major iron ore producers like Brazil and Australia have continued to decline, thereby tightening global supply and depleting inventories. Further amplifying the optimistic outlook, China's Ministry of Industry recently committed to stabilizing growth across vital sectors, including machinery, automotive, and electrical equipment. This comprehensive action plan is also focused on bolstering 10 key industries, such as steel, nonferrous metals, petrochemicals, and construction materials, indicating a robust long-term demand trajectory for industrial commodities.