Iron ore futures prices rose on Thursday, amid China’s efforts to curb a price war and reduce excess production capacity, as part of a broader effort to stabilize the economy.
The most active iron ore contract, for September delivery, ended the morning trading session on the Dalian Exchange, up 1.35% at 725 yuan ($101.19) per ton.
On the Singapore Exchange, iron ore futures for August delivery rose 1.1% to $96.20 per ton, as of 9:23 a.m. Mecca time.
Analysts at ANZ Bank noted that Beijing’s commitment to curbing excessive price competition and reducing industrial overcapacity is an indication that Chinese leaders are seeking to address deflationary pressures affecting the economy.
They added that these measures are expected to provide support to the steel sector, which has long faced challenges related to excess production capacity, according to Reuters.
