FX.co ★ Iron Ore Rises on China Supply Curbs

Iron ore futures rose above CNY 750 per ton on Tuesday, hitting their highest level in nearly a month, as upcoming Chinese restrictions on certain Fortescue portside cargoes are expected to tighten domestic supply. China Mineral Resources Group, the state-backed commodities purchaser, has reportedly notified some steel mills that, starting July 15, they will no longer be permitted to take delivery of Fortescue’s Super Special Fines and Fortune Fines, both lower-grade iron ore products. In a separate move, China has created a new mining investment entity, Guangyan International Investment Co., to strengthen its control over overseas mineral resources. Meanwhile, customs data showed that China’s iron ore imports climbed 15% month-on-month in June to 112.69 million tons. At the same time, disruptions tied to the closure of the Strait of Hormuz have driven up shipping and raw material input costs, further increasing the cost of seaborne iron ore.