What's Happening?
Iron-ore futures have reached multi-month highs following China's announcement of easing monetary policy. The most-traded May iron-ore contract on China's Dalian Commodity Exchange rose by 3.52%, while the benchmark February iron-ore on the Singapore
Exchange increased by 1.67%. China's central bank plans to cut the reserve requirement ratio and interest rates in 2026, which has boosted market sentiment.
Why It's Important?
The rise in iron-ore prices is significant for the global steel industry, as China is the largest consumer of iron-ore. Easing monetary policy in China is expected to increase demand for steel, thereby driving up iron-ore prices. This development could benefit iron-ore producers and exporters, particularly those in Australia and Brazil, who supply a significant portion of China's iron-ore imports.
