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02.09.202506:44:39UTC+00Iron Ore Gains on Chinese Demand Optimism

Iron ore futures advanced past CNY 772 per tonne on Tuesday, regaining some ground lost in the previous session amid optimism for a rebound in Chinese demand following the end of a military parade. Although the event minimally impacted hot metal production, it has sparked expectations for a quick uptick in consumption. Nonetheless, the prices for this critical steelmaking raw material continue to face downward pressure due to increasing steel inventories and narrowing profit margins. Since mid-August, stocks of major steel products have been on the rise, indicating weak demand linked to ongoing challenges within the property sector. The decline in steel consumption has further squeezed margins, reducing the appeal of raw materials. Compounding the cautious outlook, recent official data showed China's manufacturing sector contracted for the fifth consecutive month in August, underlining the weakness in domestic demand.

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