Iron Ore, Copper Prices Rise on China Supply Cuts, Demand

Iron ore prices are set for consecutive monthly gains, supported by steady demand from China despite production cuts in Tangshan aimed at reducing pollution ahead of a military parade. Futures in Singapore and China’s Dalian exchange have risen, buoyed by falling portside inventories and sustained hot metal output that remains significantly higher than last year. However, analysts warn that stricter production controls may lead to steeper output declines and increased price volatility in the near term. Copper is also experiencing gains, with prices rising across major exchanges due to positive economic data from the US and China and increased investments in copper production tied to the global shift toward cleaner energy technologies. Harmony Gold's strategic acquisitions reflect this trend, as the company aims to expand copper output to meet growing demand. Additionally, aluminum prices have increased amid supply constraints driven by China's capacity caps on smelting and elevated energy costs outside China, while other base metals such as lead, tin, and zinc also saw modest price gains.