Iron ore futures rise toward CNY 720 on China demand hopes

Iron ore futures rose toward CNY 720 per ton, moving further away from 14-month lows on hopes for stronger demand in top consumer China ahead of the September peak construction season, while Beijing signaled fresh policy support.

Markets are anticipating restocking ahead of the seasonal peak in steel demand as construction activity picks up before winter.

China will also introduce a new package of measures to expand domestic demand and support economic growth, according to Vice Finance Minister Liao Min.

Additionally, China’s National Development and Reform Commission reportedly held consecutive meetings last week urging local governments to accelerate the construction of major projects.

Meanwhile, industry data showed that blast furnace operating rates at Chinese steel mills increased last week, signaling firmer demand for iron ore.