Iron Ore Rises as Steel Output Rebounds

Iron ore prices surged to above CNY 680 per ton, marking a significant rebound from their lowest point in four years. This upward trend was driven by robust steel production and improved economic growth in China. According to official statistics, China's crude steel output grew by 1.9% month-over-month in September, reaching 2.45 million tons, the first increase since June.

This growth was fueled by strong exports and optimistic expectations of higher domestic demand during the seasonal peak. Simultaneously, China's economy expanded by 4.5% year-over-year in the third quarter, outpacing previous estimates of 4.3% and surpassing market expectations of 4.4%. However, despite these positive indicators, market conditions continue to put pressure on iron ore prices due to an abundance of global supplies, increased mining capacity, and anticipated higher shipments in the fourth quarter.

Additionally, sentiment was further impacted by the World Steel Association's projection of a 0.1% decline in global steel demand for 2026, a shift from its April forecast of 0.3% growth.