FX.co ★ Iron Ore Steadies on Improving Demand

Iron ore futures hovered around CNY 805 per ton on Friday, poised for a weekly increase due to signs of heightened demand for this crucial steelmaking component. Recent industry data from China revealed that hot metal production, an indicator of iron ore usage, surpassed 2.4 million tons this week, with blast furnace capacity utilization rising above 90%. Additionally, pre-holiday restocking in anticipation of the National Day, together with seasonal infrastructure project demands, bolstered the ferrous market. However, the potential for further price elevations might be limited by the increase in overseas shipments and a rebound in local supply. Furthermore, market sentiment was dampened by a lack of new policy measures, as the People’s Bank of China maintained a key interest rate and showed minimal urgency to adjust monetary policy.