Iron ore futures climbed to around CNY 716 per tonne on Wednesday, snapping a two-day losing streak as declining shipments from top exporters Australia and Brazil stoked supply concerns. Global seaborne shipments also showed a slight drop, adding upward pressure on prices. Supporting the rally, a private survey revealed that factory activity in China unexpectedly returned to expansion in June, suggesting renewed momentum in the world’s top iron ore consumer amid a temporary easing in US-China trade tensions.
Additionally, hot metal output—a key indicator of iron ore demand—continued to rise on a monthly basis. However, gains were capped by ongoing weakness in China’s property sector, which continues to weigh on broader market sentiment. The China Iron and Steel Association also called for stricter controls on certain steel products to retain more supply domestically, a move that could limit upward pressure on iron ore prices.
