Iron Ore Pressured by Weak Fundamentals
Iron ore futures in China traded around CNY 710 per ton, hovering near one-month lows as weak fundamentals continued to weigh on the market. Supply remained ample, with shipments from top producer Australia rising above 21 million tons week-on-week, contributing to elevated port arrivals. Industry data also showed that iron ore inventories at seven major ...
Iron ore prices in China are experiencing pressure due to weak fundamentals, with futures trading around CNY 710 per ton near one-month lows. The market's downward trend is primarily driven by several factors. First, supply remains abundant, with shipments from Australia, the top producer, surging by over 21 million tons week-on-week.
This surge in supply has led to elevated port arrivals in China. Furthermore, industry data reveals that iron ore inventories at seven major ports in Australia and Brazil have increased by 258,000 tons to 11.95 million tons last week.
However, the weak demand from China's construction and manufacturing sectors, coupled with soaring coking coal prices, has resulted in widening losses for Chinese steel mills. This is largely attributed to safety inspections and mine suspensions in Shanxi, which have restricted domestic supply. Despite these challenges, iron ore prices remain buoyed by expectations that Chinese steel mills will increase restocking before the extended Golden Week holiday in early October.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
