Iron ore futures in Singapore rose about 1% this week to $97.45 a ton, erasing earlier losses that hit a mid-August low. The gain comes despite weak Chinese steel demand and mill margins below 10%, per Mysteel data. Typically, demand strengthens before the October Golden Week holiday, but inventory drawdowns remain modest.

The China Iron and Steel Association (CISA), backed by 44 major mills including China Baowu Steel Group Corp., urged stricter production controls to address persistent oversupply. Analyst Tom Price of Panmure Liberum said the CISA call confirms a structural surplus beyond seasonal factors. Commonwealth Bank of Australia analyst Vivek Dhar noted weak domestic demand drives poor profitability, likely pushing China Mineral Resources Group to pressure iron ore miners for lower prices.

Dalian yuan-priced futures also advanced, while Shanghai steel futures declined.