FX.co ★ Iron Ore Rebounds from 10-Week Low

In March, iron ore prices rose towards CNY 780 per tonne, rebounding from a ten-week low, as robust steel demand in China helped alleviate worries about production reductions. This resurgence is attributed to independent electric-arc-furnace (EAF) steelmakers enhancing their activities, with capacity utilization climbing for the sixth consecutive week to 54.9%, marking the highest level since June 2024. Additionally, there was an increase in hot metal output, a crucial metric for iron ore demand, indicating ongoing manufacturing demand for steel. Although China aims to reform its steel sector through capacity cuts, no specific targets have been established yet. Meanwhile, iron ore imports are projected to remain strong due to seasonal restocking, despite facing challenges from US tariffs.