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Chinese Steel Mills Post Best Margins Since August as Demand Stabilizes

Chinese steelmakers are reporting their strongest profitability levels in eight months, signaling potential stabilization in the world's largest steel market. The improvement coincides with iron ore futures climbing to their highest point since October 2024, buoyed by steady Chinese demand offsetting concerns about rising global supply. Capesize vessel rates, which typically reflect demand for bulk commodities including iron ore, hit two-year highs, reaching levels not seen since December 2023. The surge in bulk-shipping demand underscores renewed activity in steel production and related industries. However, analysts caution that recent profitability gains may face headwinds from evolving market conditions. The rebound marks a significant turnaround from earlier weakness in China's manufacturing sector.