Iron ore futures rose toward CNY 770 per ton, rebounding from nearly two-month lows as supply concerns intensified at Port Hedland, Australia’s key iron ore export hub. An impending strike by BHP workers threatened to disrupt shipments after two labor unions reported that a majority of their members had voted in favor of industrial action that could begin within days, with workers demanding higher pay and improved working conditions.
Prices also found support from an easing of tensions in the Middle East, after the US and Iran reached an agreement to end the conflict and reopen the Strait of Hormuz.
On the other hand, industry data indicated that iron ore inventories at major Chinese ports rose to 160 million tons last week, signaling abundant supply. China’s iron ore imports fell nearly 6% in May from the previous month, defying expectations for an increase, as steelmakers limited purchases to immediate needs ahead of a seasonally weaker demand period.
