Iron ore rises on China stimulus hopes

Iron ore futures climbed above CNY 774 on Tuesday, rebounding from the previous session’s losses amid rising expectations that top consumer China will roll out new stimulus measures at this week’s Fourth Plenum to bolster domestic demand.

Market sentiment was also supported by easing US-China trade tensions, after President Donald Trump said he expects to reach a fair trade deal with China’s President Xi Jinping during their meeting in South Korea later this month.

Meanwhile, data released Monday showed China’s economy grew at its slowest pace in a year during Q3, weighed by trade frictions with the US, a prolonged property downturn, and weak domestic demand.

Still, iron ore faces potential headwinds from anticipated increases in global supply, with Guinea’s massive Simandou project set to come online soon.