Iron ore futures traded below CNY 760 per ton, lingering near five-week lows as growing global supply and elevated port inventories in China continued to weigh on prices. Industry data showed that shipments of the key steelmaking ingredient from major exporters Australia and Brazil jumped more than 30% week-on-week to 24.48 million tons as of April 7, following the easing of earlier weather-related disruptions.
Analysts anticipate softer Chinese demand for iron ore this year, as a slowdown in steel consumption is compounded by the country’s prolonged property sector slump. Narrowing steel profit margins in China have further curbed appetite for the raw material.
At the same time, data indicated that average daily hot metal output — a key proxy for iron ore consumption — increased for a fourth straight week, rising 0.8% to 2.39 million tons as of April 9. However, the pace of growth slowed notably from the 2.7% gain recorded in the previous week.
