FX.co ★ Iron Ore Falls on Weak China Data

Iron ore futures dipped below CNY 790 per ton, reaching a one-week low, as disappointing factory data from China, the world's largest consumer, dimmed the demand outlook. A private survey revealed that Chinese manufacturing activity in October slowed more than anticipated, a decline intensified by escalating trade tensions with the United States throughout the month. This followed government data indicating the longest contraction in over nine years. However, Presidents Donald Trump and Xi Jinping met last week, successfully easing some trade tensions by agreeing on crucial issues such as tariff reductions, lifting rare earth export restrictions, and halting investigations into semiconductor companies. Additionally, iron ore prices were pressured by the potential increase in supply, as Guinea's significant Simandou mining project is expected to commence operations soon.