FX.co ★ Iron Ore Rises on China’s Industry Pledge

Iron ore futures rose above CNY 760 per ton, hitting a three-week high after China reiterated its commitment to reducing excess capacity in the steel industry in an effort to improve the sector’s overall health. Chinese steel mills remain under pressure from persistent oversupply amid a prolonged property slump, while steel exports are being limited by growing protectionist measures overseas. At the same time, Beijing set a 2026 GDP growth target of 4.5%–5%, its lowest since the early 1990s, as the country grapples with continued deflationary pressures and higher US tariffs. Data released earlier this week showed that both the manufacturing and services sectors contracted for a second consecutive month in February, partly reflecting disruptions linked to the extended Lunar New Year holiday.