FX.co ★ Iron Ore Edges Higher as Markets Weigh China Data

Iron ore futures climbed to approximately CNY 706 per tonne on Monday, showing a slight recovery while still lingering within a recent trading band. This movement occurs as investors assess mixed economic signals from China, the world’s largest steel producer and iron ore consumer. In May, retail sales in China exceeded expectations, marking the most rapid rise in 15 months and indicating robust household demand. However, industrial production fell short of forecasts, growing at its slowest rate in six months, highlighting ongoing challenges in the manufacturing sector. Additionally, the China Iron and Steel Association has highlighted increasing pressures on domestic steelmakers from a burgeoning price war in the electric vehicle industry. Car manufacturers are reportedly urging suppliers to reduce the cost of steel plates, further tightening industry profit margins.