Iron Ore

Iron Ore Rises on Falling Inventories, Stimulus Hopes

Iron ore futures rose to around CNY 718 per tonne on Friday, reaching a one-month high as falling inventories and supportive macro signals boosted sentiment. Industry data showed total iron ore stockpiles at Chinese ports dropped to 133.6 million tons, while steel inventories declined for the seventh straight week. Renewed steel production curbs in China also lent support to prices following a recent pullback. Market participants are now looking ahead to the upcoming July Politburo meeting for potential signs of stronger policy stimulus from Beijing. Meanwhile, the US dollar sank to a 3½-year low on growing expectations of deeper Federal Reserve rate cuts. A weaker dollar makes dollar-priced commodities like iron ore more attractive to holders of other currencies, further supporting demand.

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