09.10.202506:19:25UTC+00Iron Ore Gains as China Markets Reopen

Iron ore futures rose above CNY 793 per ton on Thursday, following the reopening of Chinese markets after the Golden Week holiday. During the holiday period, the sector maintained stability, with steady shipments and ongoing restocking by steel mills to satisfy robust seasonal demand, leading to a continued decline in inventories. In the broader market context, investors are evaluating the impact of recent trade policy changes. The European Union has acted to reduce tariff-free quotas on imported steel and increase tariffs on surplus imports from 25% to 50%. This strategy is designed to limit import volumes and protect domestic producers as Western economies contend with global overcapacity and diminishing profit margins while attempting to safeguard critical industrial output. Concurrently, China is set to impose limitations on new production capacity as part of efforts to alleviate oversupply issues, aiming for a nationwide reduction in steel production ranging from 2% to 3% this year.