Iron ore futures steadied above CNY 760 per ton after sliding to multi-week lows in recent sessions, as markets drew some support from China’s central bank pledging additional financial backing to boost domestic demand.

The pledge comes amid excess industrial capacity and weak consumption, which continue to weigh on business confidence and the growth outlook.

Recent data showed consumer prices rose less than expected in January, while producer deflation extended for a 40th consecutive month, underscoring persistent deflationary pressures.

Investors are now looking ahead to a key parliamentary meeting in Beijing next month, where authorities are set to outline economic targets for the year and may unveil fresh stimulus measures.

Meanwhile, consumption in top importer China softened as manufacturers curtailed activity ahead of the extended Lunar New Year holidays.

At the same time, supply pressures increased as major exporters Australia and Brazil ramped up shipments in late January.
Source: Trading Economics