Iron ore climbed to a two-month high, with traders encouraged by China’s pledge to reduce excess competition and outdated capacity, despite the steel market’s weakening demand outlook.
The bulk commodity rose as much as 1.3% on Thursday before paring gains. Prices have moved above $100 a ton this week for the first time since May, bolstered by Beijing’s signals that it’s determined to eradicate industrial overcapacity in a bid to improve mills’ margins. Expectations for fresh property-sector stimulus measures have improved the consumption outlook.