FX.co ★ Iron Ore Firms on Supply Concerns

Iron ore futures remained above CNY 750 per ton, trading near one-month highs amid mounting concerns over tightening global supply. Australian mining giant BHP Group reported a 3% year-on-year decline in iron ore output to 68.1 million tons in the three months to June, as it continued to prioritize expansion in copper and potash. The risk of further disruptions grew as well, with a looming strike at BHP’s Port Hedland operations in Western Australia, where hundreds of workers are expected to walk off the job following the breakdown of wage negotiations. By contrast, Rio Tinto reported higher quarterly iron ore shipments, indicating that global supplies are still relatively adequate overall. In China, however, the state-backed China Mineral Resources Group has prohibited some steel mills from taking delivery of Fortescue’s Super Special Fines and Fortune Fines—both lower-grade iron ore products—adding to concerns over near-term availability.