Iron ore futures slipped below CNY 760 per ton, pulling back from one‑month highs as seasonal weakness in Chinese steel demand and shrinking steel mill margins weighed on sentiment, although expectations of tighter supply helped contain the decline. Persistent rainfall across southern China and extreme heat in the north continued to disrupt construction activity, curbing steel consumption. Industry data also indicated that blast furnace capacity utilization at surveyed steel mills fell below 90% last week, while the share of profitable mills eased to around 37%.
At the same time, elevated inventories and ample physical supply across China added further downward pressure on prices. Offsetting some of this, the state-backed China Mineral Resources Group has prohibited certain steel mills from taking delivery of Fortescue’s Super Special Fines and Fortune Fines—both lower-grade iron ore products—stoking concerns over near-term supply availability.
