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Iron OreMarkets

Iron Ore Gains on Supply Concerns

Iron ore futures climbed above CNY 720 per ton, reaching near two-week highs as signs of tightening near-term supply and possible disruptions supported prices. Industry data showed global iron ore shipments declined by 1.38 million tons in the week through August 9 to around 32 million tons, while shipments arriving at Chinese ports dropped by 13.1 million tons to 18.9 million tons. Supply concerns also increased after more workers joined a strike at BHP’s Port Hedland iron ore export hub in Western Australia, although vessel loading operations have continued. Meanwhile, China imported 108.086 million tons of iron ore and concentrates in July, down 4.09% from June but up 3.5% from a year earlier, according to recent data. Figures released over the weekend also showed China’s consumer and producer inflation slowed in July, highlighting continued weakness in domestic demand.

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