Iron Ore Prices Rise on China's Demand Optimism

Iron ore futures in China have shown volatility as traders assess the balance between improving demand and potential stimulus measures from the Chinese government. On the Dalian Commodity Exchange, the most-traded May iron ore contract recently traded at 819 yuan ($112.46), reflecting a slight increase due to expectations of higher downstream steel demand. Analysts note that the market sentiment has been bolstered by anticipated proactive policies during China's upcoming 'Two Sessions' and a recovery in shipments from Australia following recent tropical cyclones. However, uncertainties remain due to sluggish trading and a cautious approach to monetary easing by Chinese authorities. Additionally, mixed performance in domestic ore prices indicates a complex market environment, with some regions seeing price drops while others experience gains. Overall, while optimism exists, the potential for a sustained price rebound is tempered by ongoing supply-demand challenges.