Iron Ore Futures Retreat Toward CNY 710 on Supply, Rate-Hike Concerns

  • Iron ore futures fell toward CNY 710 per ton as expectations for stronger supply weighed on prices.
  • Global shipments rose 2.73 million tons week-on-week to 35.72 million tons during August 24-30.
  • BMI projects global iron ore output will reach 3.04 billion tons annually by 2030.

Iron ore futures fell toward CNY 710 per ton in early September after reaching a one-month high, as expectations for stronger second-half supply outweighed seasonal optimism about Chinese construction demand. Global iron ore shipments rose by 2.73 million tons week-on-week to 35.72 million tons from August 24-30, although arrivals at 47 Chinese ports fell by 7.66 million tons to 19.52 million tons. BMI expects global iron ore production growth to accelerate to an average of 2.2% annually from 2026 through 2030, lifting annual output to 3.04 billion tons by 2030, compared with 1.2% annual growth over the previous five years. The broader industrial-metals outlook weakened as surging oil prices increased inflation risks and strengthened expectations of imminent interest-rate hikes, with higher borrowing costs potentially slowing global growth and reducing metals demand. Earlier, steel rebar futures had risen above CNY 3,140 per ton, their highest level since mid-June, on expectations of stronger demand before China’s September peak construction season. The National Development and Reform Commission reportedly urged local governments to accelerate major-project construction, but China’s non-manufacturing PMI remained at 49.0 in August, while property-sector regulatory changes pressured smaller developers. Chinese blast furnace operating rates and daily hot metal output also declined last week, and higher coking coal costs squeezed steel mill margins.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.