Iron ore futures prices rose, driven by Beijing’s intention to reduce excess industrial capacity as part of its efforts to improve steel companies’ profit margins. Expectations of new incentives to support the real estate sector also boosted demand prospects in China.
On Thursday, the September iron ore contract on the Dalian Exchange rose 1.3% to 781.5 yuan ($108.87) per ton.
On the Singapore Exchange, September iron ore futures rose 0.5% to $100.65 per ton at 8:32 a.m. Mecca time, the highest level since May, according to Bloomberg.
Economic data showed that China’s steel production recorded its largest decline in ten months in June, falling 9.2% year-on-year to 83.2 million tons. This makes total production in the first half of the year the weakest since 2020.
Reuters.
