Iron Ore Prices Rise Amid China's Supply-Side Reform Hopes

Iron ore prices are set to reach their highest close since May, boosted by China's renewed focus on supply-side reform and the potential positive impact on steel-mill margins. Analysts at Citigroup see this as a precursor to supply-side reform 2.0, but expect less aggressive capacity cuts and limited follow-up demand measures. Goldman Sachs forecasts iron ore prices to be supported at $95-100 a ton in the near term, but believes prices above $100 a ton are unsustainable.