Iron ore futures rose above CNY 715 per ton on Monday, extending gains for a fourth straight session as traders anticipated that Chinese steel mills would step up raw material purchases ahead of the early October Golden Week holiday. The demand outlook was further supported after several Chinese steelmakers pledged to cut output to draw down steel inventories amid rapidly shrinking profit margins.
Profitability across China’s steel sector has deteriorated sharply, pressured by high production costs and subdued steel demand. At the same time, expectations that major coking coal mines will resume operations in September and October—following a fatal mine accident in May—have improved the supply outlook for this key steelmaking input.
Meanwhile, industry data showed that iron ore inventories at 35 major Chinese ports rose by 840,000 tons on the week to 144.33 million tons as of September 18, halting the previous destocking trend.
