Iron-ore hits two-month high as China policy hopes buoy demand
Iron-ore climbed to a two-month high, with traders encouraged by China’s pledge to reduce excess competition and outdated capacity, despite the steel market’s weakening demand outlook.
The bulk commodity rose as much as 1.3% on Thursday before paring gains. Prices have moved above $100 a ton this week for the first time since May, bolstered by Beijing’s signals that it’s determined to eradicate industrial overcapacity in a bid to improve mills’ margins. Expectations for fresh property-sector stimulus measures have improved the consumption outlook.
Those positive signs have been balanced by data that showed China’s steel output saw its biggest decline in 10 months in June, falling 9.2% from a year earlier to 83.2-million tons. That left first-half production at its weakest since 2020.
“Iron ore prices have responded positively to supply-side reform news alongside demand hopes in China’s property sector,” Commonwealth Bank of Australia analyst Vivek Dhar said in a note. Still, he added that questions remained over whether the nation’s steel output decline will be maintained for the rest of the year, and how production policies will interact with potential stimulus.
Iron ore was up 0.5% to $100.40 a ton at 10:33 a.m. in Singapore. Futures in Dalian rose 0.8%, while steel contracts in Shanghai also gained.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Flatproofing tire technology engineered to perform in extreme mining environments.
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
