FX.co ★ Iron Ore Rises on Pre-Holiday Restocking

Iron ore futures rose above CNY 710 per ton, rebounding from one-month lows as Chinese steelmakers stepped up seaborne purchases ahead of the extended National Day holidays in early October. Industry data showed that daily trading volumes for seaborne cargoes jumped 43% to 1.41 million tons on September 16 compared with the previous day.

The demand outlook also brightened after several Chinese steel producers pledged to cut output in a bid to reduce steel inventories amid rapidly eroding margins. Profitability across China’s steel industry has deteriorated sharply, squeezed by elevated production costs and subdued steel demand.

Recent data further revealed that new home prices in China fell again in August, highlighting the ongoing drag from the country’s protracted property market downturn.