Iron ore futures rebounded to around CNY 715 per ton, recovering from 15‑month lows as renewed concerns over potential supply disruptions resurfaced. A two-day strike is set to take place at BHP’s Port Hedland operations in Western Australia this weekend, despite progress in negotiations between the miner and labor unions. The industrial action is expected to delay as many as 16 iron ore shipments over the two-day period. BHP exports roughly $80 million worth of iron ore per day through Port Hedland, the world’s largest iron ore export terminal.
On the demand side, fundamentals remain weak. A prolonged slump in steel demand and worsening steel margins in top consumer China continue to weigh on the market. Hot metal production has declined for several consecutive weeks as steel mills cut output, while sluggish steel consumption has further dampened demand for raw material purchases.
