Iron ore futures rose above CNY 790 per ton, rebounding from three-week lows, as the pace of global steel production declines slowed in April compared with March, and the contraction in Chinese steel output also eased. These figures lent some support to sentiment in the iron ore market, even though underlying demand remains fragile. Steel profit margins in China continue to be squeezed by persistent weakness in infrastructure and property construction.
Last week, iron ore prices dropped to multi-week lows as increased shipments from Australia and Brazil added to supply pressures, while Chinese steel mills continued to struggle with high inventory levels. Supply is expected to expand further in the coming weeks, even as demand growth stays subdued, with blast furnace utilization rates already running at relatively high levels.
