FX.co ★ Iron Ore Rises on Higher China Steel Output

Iron ore futures rose to approximately CNY 801 per tonne on Tuesday, recovering losses from earlier in the week. This rise followed industry data revealing that Chinese steel manufacturers produced 2.09 million tons of crude steel per day in early September, marking a 7.8% increase compared to the same period last year. The price uplift was further supported by inventory restocking activities in anticipation of China's National Day holiday. On the supply front, last week's seaborne imports reached 25.6 million tons, exceeding the five-year average of 22.1 million tons. Additionally, August imports nearly hit 112.4 million tons, driven by record seasonal shipments from Brazil and the clearing of port backlogs following disruptions caused by late-July typhoons. Nevertheless, weak Chinese economic indicators pointed to ongoing difficulties in the property sector, with new home prices decreasing by 0.3% in August compared to the previous month. This continued the downward trend that started in May 2023, highlighting persistent subdued demand in the housing market.