Iron ore futures climbed toward CNY 770 per ton, reaching a one-month high as China renewed its commitment to support the steel sector by curbing excess capacity. Economic planners at the National People’s Congress signaled plans for orderly reductions in steel output capacity, a move that could lift steel prices and improve profit margins. This in turn may bolster demand for steel-making raw materials such as iron ore. Chinese steel mills continue to face pressure from persistent oversupply amid a prolonged property sector downturn, while steel exports are increasingly constrained by protectionist measures abroad. Meanwhile, Beijing set a 2026 GDP growth target of 4.5%–5%, the lowest since the early 1990s, as the country grapples with ongoing deflationary pressures and higher US tariffs.
