Iron Ore Rises as Steel Output Rebounds

Iron ore futures climbed above CNY 680 per ton, recovering from four-year lows amid stronger crude steel production and better-than-expected economic growth in China. Official data showed that China’s daily crude steel output increased 1.9% month over month to 2.45 million tons in September, marking the first monthly rise since June, supported by robust exports and expectations of stronger seasonal domestic demand. Meanwhile, China’s economy grew 4.5% year over year in the third quarter, accelerating from 4.3% in the previous quarter and exceeding forecasts of 4.4%. However, underlying market conditions continued to weigh on iron ore, with ample global supplies, expanding mining capacity, and rising shipments expected in the fourth quarter. Sentiment was further dampened by the World Steel Association’s forecast of a 0.1% contraction in global steel demand in 2026, reversing its April projection of 0.3% growth.