FX.co ★ Iron Ore Gains as Steel Mill Output Improves

Iron ore futures rose above CNY 680 per ton, rebounding from four-year lows amid signs of improving demand in top consumer China. Industry data showed that China’s average daily hot metal output—a key gauge of iron ore consumption—climbed by 3,700 tons to 2.36 million tons, marking a second consecutive weekly increase as blast furnaces resumed operations after maintenance. The blast furnace operating rate at surveyed mills also inched up by 0.14 percentage points week-on-week to 87.3% as of October 28. At the same time, freight rates on both Australia–China and Brazil–China routes continued to rise, lending additional support to iron ore prices. Even so, Chinese steel mills remain loss-making, and domestic steel demand is still subdued. Strong global iron ore supply may also cap further price gains.