High Chinese port and mill inventories and record Pilbara shipments added to supply pressure, while investors awaited the Politburo meeting for possible economic stimulus signals.
Iron ore futures dropped toward CNY 740 per ton, hovering near three-week lows as abundant global supply added to pressure from softer demand in China. Imported iron ore inventories at Chinese ports remained high, while stockpiles at Chinese steel mills rose 8% last week, reinforcing concerns about oversupply. Earlier signs of weaker consumption had already emerged as Chinese steelmakers carried out maintenance and average daily hot metal output fell for a third straight week to 2.38 million tons as of July 23, the lowest level since April 3. Supply data also showed Western Australia’s Pilbara Ports, the world’s largest iron ore export hub, handled more than 800 million tons of cargo during the 2025-2026 financial year, with iron ore shipments of about 759.4 million tons. Port Hedland handled 580.4 million tons and Dampier processed 178.3 million tons over the same period. Investors are watching the Politburo meeting in Beijing for potential stimulus measures that could support the Chinese economy and improve demand expectations.