Iron ore futures fell to around CNY 708.5 per tonne on Tuesday, marking a second consecutive session of decline, even as manufacturing data from top consumer China surprised to the upside. The Caixin Manufacturing PMI showed that factory activity unexpectedly returned to expansion in June, buoyed by increased policy support from Beijing aimed at countering the impact of higher US tariffs.
However, optimism was tempered by ongoing concerns over China’s struggling property sector and lingering uncertainty surrounding US-China trade relations, both of which continue to cloud the demand outlook for industrial metals. Adding to the pressure, Australia’s government released a report projecting softer seasonal demand and a weaker pricing environment ahead. In China, the head of the China Iron and Steel Association also called for tighter controls on billet exports, following a surge in year-to-date shipments of the semi-finished steel product.
