FX.co ★ Iron Ore Rises on China Stimulus Hopes

Iron ore futures surged to exceed CNY 774 on Tuesday, recovering from the losses experienced in the previous session. This rise is attributed to growing expectations that China, the leading consumer, will introduce new stimulus measures at the Fourth Plenum this week to enhance domestic demand. Furthermore, market sentiment was bolstered by the easing of trade tensions between the US and China, following President Donald Trump's announcement of his anticipated meeting with President Xi Jinping in South Korea later this month, where a mutually beneficial trade agreement is expected. However, data released on Monday indicated that China's economy experienced its slowest growth in a year during the third quarter, hindered by ongoing trade conflicts with the US, a prolonged slump in the property market, and subdued domestic demand. Despite this, iron ore prices could face potential challenges from the expected increase in global supply, particularly with the imminent launch of Guinea's extensive Simandou project.