FX.co ★ Iron Ore Rises as Sentiment Improves

Iron ore futures rose to approximately CNY 787 per tonne on Friday, marking a two-week high as the market sentiment improved due to stable fundamentals and heightened examination of China’s steel industry strategy for 2025-2026. Reports suggest that Beijing plans to limit steel output this year and the next, targeting ongoing overcapacity issues. In March, the world’s largest steel producer committed to a comprehensive restructuring of its expansive industry, although specific details on the extent and timing of production cuts have yet to be disclosed. Official data reveals a 3.1% decline in China's crude steel production, totaling 594.47 million tonnes for the first seven months of the year. This week, prices received additional support after Rio Tinto halted operations at its extensive Simandou project in Guinea due to a worker's fatality. While the project, long delayed, was anticipated to commence exports in November, the company has not confirmed if the suspension will alter this timetable.