FX.co ★ Iron Ore Hits 1-Month High

Iron ore futures rose above CNY 720 per ton to a one-month high, as investors bet on a seasonal recovery in demand ahead of the traditional peak construction period in September. Construction activity in top consumer China typically accelerates before winter, improving the demand outlook for steel and related raw materials.

In addition, China’s National Development and Reform Commission has reportedly convened meetings in recent weeks, urging local governments to speed up the rollout and construction of major projects. Higher freight and oil costs have also lent support to iron ore prices, even as rising coking coal prices continue to compress steelmakers’ margins.

Industry data further indicated a slight decline in blast furnace operating rates at Chinese steel mills last week, accompanied by a drop in daily hot metal output.