Iron ore futures remained steady at approximately CNY 725 per tonne on Thursday, marking a position close to six-week highs. This stability comes as China intensifies its initiatives to curb industrial overcapacity and mitigate intense price competition, as part of wider strategies to address deflationary challenges. These efforts are anticipated to bolster China’s beleaguered steel sector, currently facing slim profit margins and excessive production volumes. On the supply front, exports from leading producers such as Australia and Brazil have been on the decline, heightening market apprehensions. Recent reports indicate that major mining companies, including Rio Tinto, BHP, Fortescue, and Vale, have all experienced a decrease in exports compared to the previous month. Further contributing to a positive outlook, a recent private survey unexpectedly revealed that Chinese manufacturing activity resumed growth in June, suggesting a possible recovery in industrial demand. This improvement is linked to a temporary reduction in US-China trade tensions, enhancing confidence in the world’s largest iron ore market.
The material has been provided by InstaForex Company – www.instaforex.com
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