FX.co ★ Iron Ore Gains on China Demand Hopes

Iron ore futures climbed toward CNY 720 per ton, rebounding from 14-month lows on expectations of stronger demand in top consumer China ahead of the September peak construction season, as Beijing signaled fresh policy support. Traders are positioning for restocking before the traditional surge in steel demand, with construction activity typically accelerating prior to winter. Vice Finance Minister Liao Min stated that China will introduce a new package of measures aimed at boosting domestic demand and supporting economic growth. In addition, the National Development and Reform Commission reportedly held consecutive meetings last week, urging local governments to speed up the implementation of major projects. At the same time, industry data indicated that blast furnace operating rates at Chinese steel mills rose last week, pointing to firmer demand for iron ore.