Iron ore futures advanced toward CNY 770 per ton, a one-month high, after China renewed its pledge to support the steel industry by cutting excess production capacity. Economic planners at the National People’s Congress signaled plans for a gradual and orderly reduction in steel output, a strategy that could push steel prices higher and improve profit margins. That, in turn, may underpin demand for key steelmaking inputs such as iron ore.
Chinese steel producers remain under strain from chronic oversupply, exacerbated by a protracted slump in the property sector, while their export options are increasingly limited by rising protectionist measures overseas. At the same time, Beijing set a 2026 GDP growth target in the range of 4.5% to 5%, its lowest goal since the early 1990s, as the country continues to contend with deflationary pressures and higher US tariffs.
