Iron ore prices have continued their upward trend, surpassing the $100 per ton mark to reach the highest level in two months. This momentum is driven by China’s decisive steps to reduce excess steel production capacity and implement sector reforms. These developments have fueled optimism among investors and traders, increasing buying appetite.
China’s recently discussed stimulus policies for the real estate sector have also positively influenced demand expectations for iron ore. As a result, despite a weak demand outlook, steel producers’ profit margin improvement prospects have strengthened.
On the other hand, recent data shows China’s steel production fell by more than 9% year-on-year in June, dropping below 83 million tons. This marks the sharpest production decline in recent months and indicates that total output in the first half of the year has reached its lowest level since the post-pandemic period.
Analysts highlight that China’s supply control measures and reforms have positively impacted prices, yet uncertainty remains over whether the downward production trend will continue. Additionally, close attention is being paid to how new government economic stimulus measures may affect market dynamics.
China’s strategic moves and the market’s reaction continue to be key factors shaping the direction of the global iron and steel industry.
Comments
No comment yet.