The price of iron ore is on its way to winning profits for the second consecutive month, with the support of production discounts in one of the steel industry centers near Beijing, in addition to a report saying that the authorities plan to draw up restrictions on production next year. Future contracts in Singapore stabilized near the $ 104 per tonne level, which scored about 5% during August. The contracts denominated in Dalian also tend to achieve profits for the third month in a row. The future contracts jumped by about 2% on Thursday after a report from Reuters indicated that China made strict control of the steel production capacity and reduced the production volume. Reducing steel production supports prices, although steel production reduces, it may seem negative for the component of the steel industry, iron ore, it can contribute to improving the conditions of upset steel factories and supporting construction metal prices. In the same logic, the price of iron ore saw a wave of Ascension after the production in Tangishan steel factories was reduced, as part of the efforts to reduce pollution and ensure a clear atmosphere during the upcoming military parade in Beijing in early September. Also read: “JP Morgan”: China Curbed The surplus production capacity can support stock markets. The price of iron ore is aimed at registering the first consecutive monthly profits since 2024 with the support of morale, although the profits can remain limited by the unstable view of China’s economy. The impact of Beijing’s plans to control production is still clear. The growth stability document has no clear goals; Stephen Yu, a researcher at “Mysteel”, said that “the growth document released this year is very similar to those issued in 2023, and that it does not have a clear political goals,” with reference to the document on Reuters. The “MI Steel” data showed this week that the levels of public demand and stock pressure in five main products of steel were moderate, which are a positive indication of the expectations of the peak of the peak in the months of September and October. Also read: Signs of Chinese steel companies that recover, thanks to export and raw materials, high stock, important factories, the numbers of the ‘Chinese Iron and Steel Association’ indicated that the supplies of the most important steel factories in the country in mid-August compared to the beginning. Iron ore price stabilized local time at $ 104.20 per ton at 11:44 p.m., and achieved 4.5% during the month. On the other hand, the contracts denominated in Dalian fell 0.4%, but they are still 1.1% high during August. In other iron metal markets, the performance of the future contracts for the hot and the hot arming came, while the Coke contract in Dalian fell by 2%.
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