What happened
Iron ore futures climbed above CNY 720 per ton to reach a one-month high, driven by expectations of rising demand during China's peak September construction season. The rally was supported by China's National Development and Reform Commission urging local councils to speed up major construction projects, alongside rising freight and crude oil costs.
Why it matters here
China's industrial demand directly dictates earnings and dividend payouts for major Australian exporters like BHP, Rio Tinto, and Fortescue. While coking coal costs are squeezing steel mill margins, policy pushes for infrastructure spending help stabilize iron ore demand and backstop federal tax receipts.
What to watch
September Chinese blast furnace operating rates, daily hot metal output figures, and further economic stimulus announcements from China’s Ministry of Finance.
Source
tradingeconomics.com