(Bloomberg) — Industrial metals from copper to iron ore rose as investors assessed the outlook for demand in China, including Beijing’s plans to potentially reduce nationwide steel output this year.
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Iron ore futures traded just above $100 a ton, after ending more than 1% lower on Wednesday, when the nation’s economic planning agency said it would mandate steel-production cuts to help ease overcapacity. It was the first time the body proposed to cut steel output in its draft plans, according to Citigroup Inc.
China’s leaders continued with their top legislative meetings on Thursday, with the market looking out for more specifics on the cuts. Agencies including the National Development and Reform Commission will hold a press conference at the annual National People’s Congress this afternoon.
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Iron ore largely steadied in the first months of this year after a punishing loss in 2024 as China’s property crisis sapped usage. The world’s top steelmaker is now entering its traditional high season for demand in March and April, with some market watchers expecting that consumption may rise.
“Improvements in demand may drive a rebound in iron ore prices as the market returns to fundamentals-driven trading logic,” Shanghai Metals Market analysts said in a note. “However, high shipment data and the continued loose supply-side conditions will likely limit the rebound’s scope.”
Non-ferrous metals also moved higher, with copper rising above $9,600 a ton to head for its best close since November on the London Metal Exchange. Prices were up 0.7% at $9,647.50 as of 11:18 a.m. local time.
The copper market has been gripped by concerns that the Trump administration may introduce a tariff on imports of the metal, with futures on the Comex in New York outpacing gains seen on the LME. Aluminum, zinc, nickel and tin were also more than 1% higher.
Iron ore futures traded up 0.5% at $100.25 a ton in Singapore, after earlier rising as much as 1.4%.
–With assistance from Eddie Spence and Mark Burton.
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