Betting on a rebound in Chinese demand? Iron ore sees its largest two-day increase in two years

Morgan Stanley expects the spot price of iron ore to reach $120 per ton in the third quarter as Chinese iron ore prices rise. With stable Chinese economic data, a rebound in the stock market, and optimism about the global economic outlook, the manufacturing PMI index in China is expanding, and the service PMI has reached its highest level. The A-share market's rebound reflects increased market confidence. Macquarie Group, a financial company, points out that the construction industry in China is active, iron ore inventories have peaked, and national blast furnace steel production has increased. Morgan Stanley indicates that the supply-demand balance will support price increases. It is expected that stable demand, a lack of shipping supply, and reduced Chinese inventories will drive spot prices in the third quarter to further rise to $120 per ton