FX.co ★ Iron Ore Rises on China Demand Hopes

Iron ore futures climbed above CNY 784 per tonne on Thursday, marking a near one-week peak, fueled by optimism surrounding increased demand from China, the leading consumer. This surge is anticipated as steel manufacturers gear up to boost their output following recent production restrictions. In significant hubs like Tangshan, producers are reportedly preparing to resume operations and intensify the procurement of raw materials. Nonetheless, the market continues to be pressured by rising steel inventories, which hinder price stability and the pace of production recovery. At the same time, Goldman Sachs has revised its average iron ore price prediction for the fourth quarter of this year upward, while maintaining its year-end target for 2026. Over the long term, consultancy Wood Mackenzie forecasts a decrease in China's steel consumption by an average of 5 to 7 million tons annually over the next decade.