The futures price of iron ore increased to 710 yuan (equivalent to 98 dollars) per ton, distancing itself from its lowest level in eight weeks. This change is due to new data indicating that China's manufacturing sector returned to growth in September, and the demand outlook in the world's largest metal consumer has improved.
China's Economic Measures to Boost Growth
China has also introduced measures to channel low-cost credit to sectors such as infrastructure and technology, and has increased support for homebuyers. These measures are aimed at strengthening China's economic growth amid the challenges the country is facing.
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Market Thirst and China's National Holiday
Meanwhile, investors are preparing for the week-long National Day holiday in China, which is expected to lead to a decrease in trading volume and economic activities during this period. This holiday typically affects China's financial markets.
However, the ferrous metals market remains under pressure from weak steel demand and declining profitability among mills. For this reason, the China Iron and Steel Association has urged steel producers to reduce their output and lower inventories to maintain profit margins and control excess supply.
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