Iron ore futures climbed toward CNY 690 per ton, their highest level in four weeks, as improving profit margins lifted market sentiment. Industry data showed that the average margin on imported iron ore turned positive in the latest period, rising from -CNY 3.09 per ton to CNY 2.36 per ton. This shift was mainly driven by slightly lower freight costs and higher spot prices at Chinese ports. Steelmaking margins have also improved recently, reinforcing expectations for increased hot metal output in the coming weeks.
Nonetheless, persistent signs of ample global supply continued to cap gains. Combined production from 16 major mining companies rose by about 22.98 million tons year-on-year in the first three quarters of 2026. On the demand side, an industry survey showed that 17 blast furnaces across China underwent maintenance in October, cutting daily hot metal production by roughly 57,100 tons, with most of the affected capacity located in North China.
