Iron Ore Prices

Iron ore prices averaged USD 120.9 per metric ton in September, 9.8% higher than August’s price and up 21.1% year on year. On 29 September, the benchmark iron ore 62% Fe import price, including freight and insurance, at the Chinese port of Tianjin was USD 120.0 per metric ton, up 1.7% month on month.

In September, top consumer China stepped up its stimulus efforts, with the Central Bank reducing the reserve requirement ratio. Additionally, the government deployed stimulus policies in the construction sector—which uses iron ore extensively. In late August, the government pledged to allow the largest cities to cut mortgage rates and down payments from 25 September. Accordingly, in September, house sales expanded at a double-digit pace in month-on-month terms. Moreover, industrial demand likely strengthened, as the manufacturing PMI posted its first expansion since March in September.