Iron ore gains as China markets reopen

Iron ore futures climbed above CNY 793 per ton on Thursday as Chinese markets reopened after the long Golden Week holiday, with early trading suggesting a steady resumption of industrial activity.

During the break, supply and logistics remained stable, while steel mills maintained restocking to meet stronger seasonal construction and manufacturing demand.

Portside inventories continued to edge lower, signaling ongoing consumption strength despite broader economic uncertainty.

At the same time, traders assessed new trade policy shifts in Europe after the EU announced plans to reduce tariff-free quotas on imported steel and raise tariffs on excess shipments from 25% to 50%.

The move aims to shield European producers from a flood of low-cost imports, particularly from China, amid persistent global overcapacity and margin pressures. Analysts noted that such measures could tighten trade flows and support iron ore demand indirectly by keeping steel prices elevated in global markets.

Meanwhile, in China, authorities are stepping up efforts to curb overproduction in the steel sector.

The government is reportedly targeting a 2%–3% nationwide reduction in crude steel output this year, in line with its strategy to balance economic stability with environmental and capacity control goals.

Local governments have already begun tightening production quotas in major hubs such as Tangshan and Handan, with additional restrictions expected in the winter months to meet air quality targets.

Looking ahead, sentiment in the iron ore market remains cautiously optimistic, with traders watching for signals from upcoming credit and property data to gauge the strength of downstream steel demand and potential policy support from Beijing.