FX.co ★ Iron Ore Nears Five-Month High

Iron ore futures surged to approximately CNY 813 per ton on Tuesday, marking their highest point in nearly five months. This rise is fueled by growing anticipations of new economic stimulus measures from China, the world's leading consumer of this commodity. Market sentiment improved with the initiation of a CNY 1.2 trillion hydropower project, anticipated to boost the demand for construction materials such as steel and concrete. Additionally, prices gained from China's persistent efforts to address overcapacity and reduce fierce competition within its steel industry—strategies that have enhanced profit margins for steel producers and facilitated increased production. Further positive prospects stemmed from the broader action plan outlined by the industry ministry aimed at stabilizing growth in critical sectors, including machinery, automotive, and electrical equipment. This strategic plan targets 10 core industries, including steel, nonferrous metals, petrochemicals, and construction materials, bolstering expectations for continued strong demand for industrial commodities.