28.10.202505:52:03UTC+00Iron Ore Climbs to 2-Week High

Iron ore futures advanced to approximately CNY 790 per ton, reaching a two-week peak following China's announcement of new measures aimed at curbing steel production in critical areas to rebalance the supply-demand equation. This initiative has propelled an increase in steel prices and improved profit margins, thus amplifying the demand for iron ore and other raw materials. Recently, Beijing put forth a more stringent capacity swap scheme that would restrict the addition of new steel capacity in significant regions, prohibit the transfer of capacity from non-key to key areas, and declaim reallocation of capacity among key zones. This policy emerges amidst China's struggle with sluggish domestic demand, exacerbated by a prolonged downturn in its property market, which has adversely affected steel margins. Meanwhile, investors are observing trade developments closely as China and the United States have agreed on a framework for a prospective trade agreement. This agreement, set to be finalized by Presidents Trump and Xi this week, addresses several core issues.