Iron Ore Rises on Strong China Data

Iron ore futures climbed toward CNY 710 per ton, recovering from eight-week lows after data showed China’s manufacturing sector returned to growth in September, improving the demand outlook in the world’s largest metals consumer. China also introduced measures to direct lower-cost credit toward sectors including infrastructure and technology, while increasing support for homebuyers as part of efforts to strengthen economic growth. Meanwhile, investors prepared for China’s weeklong National Day holiday, which is expected to bring lower trading volumes and reduced economic activity during the period. The ferrous metals market also remains under pressure from weakening steel demand and deteriorating profitability among mills. The China Iron and Steel Association has called on steelmakers to cut production and reduce inventories to protect margins and curb excess supply.