Iron ore futures climbed above CNY 760 per ton, reaching a three-week high after China reaffirmed its commitment to curb overcapacity in the steel sector, aiming to strengthen the health of the industry. Chinese steel mills continue to face pressure from persistent oversupply amid a prolonged property downturn, while steel exports are being constrained by protectionist measures abroad. Beijing also set a 2026 GDP growth target of 4.5%–5%, the lowest since the early 1990s, as the country contends with ongoing deflationary pressures and higher US tariffs. Data earlier this week showed that Chinese manufacturing and services sectors contracted for a second consecutive month in February, partly due to disruptions from the extended Lunar New Year holiday.
