Iron ore rose for a second day, as traders focused on expectations that the Chinese government will enforce steel production cuts ahead of next month’s military parade in Beijing.
Singapore futures rose above $104 a ton, extending a 1.4 per cent gain in the previous session. The steelmaking material has been lifted by reports that steel mills in northern China have been ordered to curb output to ensure blue skies during the event on Sept. 3.
The parade commemorates the 80th anniversary of the end of World War II and invited dignitaries include Russian President Vladimir Putin. China typically halts heavily polluting industries during such events, and the last parade a decade ago saw nearly 4,000 companies near the capital suspend production.
China’s steel industry remains highly sensitive to government-mandated controls on production, given the urgency around Beijing’s campaign against overcapacity.
The short-term impact of cuts to steel output is typically higher prices and margins, which allows the cost of inputs such as iron ore and coking coal to rise. However, ferrous markets still remain oversupplied, which could easily lead to a retreat in prices if stockpiles continue to be elevated, said Pan Da, an analyst at Henan Zhonggangwang Technology Group Co.
Futures added 1 per cent to $104.55 a ton as of 11:26 a.m. in Singapore. In other metals, copper was up 0.3 per cent at $9,764.50 a ton in London after easing on Monday. Aluminum and zinc also rose.
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Published on August 12, 2025