Iron ore $118/t on China $500B stimulus, BHP $47.20 +2.1%, RIO $132.50 +1.9%, FMG $26.80 +2.4%.
Iron Ore at $118/t on China Stimulus - BHP, Rio Close Higher - 24 Oct 2026
Published: 24 Oct 2026 | Commodities • ASX | Educational Only
Iron ore futures closed at $118/t, up 12% in two weeks, after China announced infrastructure measures. BHP closed $47.20 (+2.1%), Rio Tinto $132.50 (+1.9%), Fortescue $26.80 (+2.4%). China steel output was 92Mt in September, up 3% YoY, first rise in 6 months per National Bureau of Statistics China.
Factual Data - China Measures (Public Reports)
- $300B lending facility for property developers (Reuters report)
- Mortgage rate cut to 3.2% from 3.45% (PBOC announcement)
- Infrastructure spending +8% YoY in Q3 (NBS China)
- Port iron ore inventories 148Mt, mill inventory coverage 35 days vs 28 days prior month (Mysteel)
- China property sales -2% YoY vs -8% prior quarter - showing moderation
Miner Comparison - Public Company Reports
| Company | Reported Cost $/t | Last Price | Production |
|---|---|---|---|
| BHP | ~$18 (company reports) | $47.20 | ~290Mtpa iron ore |
| RIO | ~$20 | $132.50 | ~320Mtpa |
| FMG | ~$28 | $26.80 | ~190Mtpa |
Educational Context: Iron ore price influences miner revenue. At $118/t vs costs above, implied margins are higher than at $100/t. However commodity prices are volatile. Historical range past 12 months: $95-$135/t. Forecasts vary: Goldman $95 avg 2026, Morgan Stanley $110 avg (public forecasts, not guarantees). Simandou mine in Guinea expected to add 120Mt supply from late 2026 (public reports). This is factual context for learning, not a recommendation.
Data: Mysteel, NBS China, BHP/RIO/FMG ASX reports. Educational only.
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