Prices of iron ore futures climbed for a second straight session on Wednesday, as Goldman Sachs raised its average price forecast for the fourth quarter of this year to $95 a metric ton from $90 a ton previously.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade 0.71% higher at 777 yuan ($108.63) a ton.
The benchmark October iron ore on the Singapore Exchange was up 0.39% at $102.85 a ton, as of 0721 GMT.
Goldman Sachs maintained its 2026-end price forecast of $80 a ton.
While prices have rebounded, ore demand has not showed signs of improving, analysts at broker First Futures said, flagging potential downside risks in the short term.
Iron ore demand has been suppressed this week as steelmakers in top Chinese production hub Tangshan are required to curb production to ensure better air quality for a military parade in Beijing to commemorate the end of World War Two.
Consumption of the key steelmaking ingredient is expected to pick up after the removal of production restrictions from September 4, said analysts.
Coking coal and coke, other steelmaking ingredients, shed 1.25% and 0.59%, respectively.
China’s steel consumption is expected to fall by an average of five to seven million tons annually over the next decade, according to consultancy Wood Mackenzie.
($1 = 7.1529 Chinese yuan)
(Reporting by Amy Lv and Lewis Jackson; Editing by Subhranshu Sahu and Sonia Cheema)
