07.01.202605:41:19UTC+00Iron Ore Gains on China Demand Hopes

Iron ore futures have risen above CNY 810 per tonne, approaching their highest levels since February of the previous year. This increase in futures is driven by optimism that new policy measures from China, the largest consumer, will boost demand. The People's Bank of China has announced its intention to lower the reserve requirement ratio and reduce key policy rates this year, aiming to ensure sufficient liquidity and maintain a supportive monetary policy, thereby strengthening the overall demand outlook. Meanwhile, there is growing anticipation in the markets of at least two interest rate cuts by the US Federal Reserve this year. Additionally, Chinese steelmakers are accelerating their restocking efforts in anticipation of the Lunar New Year holiday in February, which is aiding in countering the pressure from abundant global supply and indications of slowing steel production in China. Furthermore, strong steel profit margins, low inventories of raw materials, and a resurgence in hot metal production could offer additional support to the market.