FX.co ★ Iron Ore Retreats Despite Upbeat China Factory Data

Iron ore futures declined to approximately CNY 708.5 per tonne on Tuesday, marking the second day of consecutive losses, despite unexpectedly positive manufacturing data from China, the largest consumer. The Caixin Manufacturing PMI indicated a surprise return to growth in factory activity for June, driven by Beijing's enhanced policy measures designed to mitigate the effects of increased US tariffs. Nonetheless, enthusiasm was tempered by ongoing concerns over China's property sector struggles and persistent uncertainties in US-China trade relations, both of which continue to overshadow the demand forecast for industrial metals. Further pressure came from an Australian government report predicting reduced seasonal demand and a weaker pricing outlook. In China, the head of the China Iron and Steel Association advocated for stricter regulations on billet exports, following a significant rise in shipments of the semi-finished steel product this year.