Iron ore continued to enjoy a tailwind from record Chinese steel production, although the weight of ore supply is likely to keep prices in check. Vale produced more than expected last quarter, while BHP’s shipments also rose as demand continues to benefit from China’s rebound.

On the macro front, China kept its Loan Prime Rates unchanged, signaling its satisfaction with the state of the economy. The third-quarter GDP breakdown confirmed the decisive role of manufacturing, and construction in particular, in the recovery so far.

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Earnings fallout included a slide in Tianqi Lithium’s stock after losses widened ahead of a key debt repayment. Citigroup thinks a turnaround may require the sale of equity or assets. In contrast, Zijin Mining saw healthy gains after its results, with another strong quarter in prospect due to higher gold prices and copper output, according to Bloomberg Intelligence.

Events Today

China LNG & Gas International Exhibition & Summit, Shanghai, day 1Citi Global Natural Resources Virtual Conference 2020, day 1

Today’s Chart

Chinese steel and aluminum output hit all-time highs in September, testament to the importance of state-backed investment to the nation’s rebound from the pandemic. But for steel, at least, the surge could be nearing its peak with the approach of winter production curbs to control pollution and as private consumption takes a greater role in the recovery.