FX.co ★ Iron Ore Firms on Lower Shipments

Iron ore futures remained above CNY 780 per ton, hovering near three-week highs, as shipments from Australia and Brazil declined last week, prompting a drawdown in port inventories across China. Chinese steel mills have also been restocking ahead of the extended Labor Day holiday, adding further support to prices. At the same time, reports indicate that Fortescue is close to finalizing a supply agreement with state-backed China Mineral Resources Corp, following a similar arrangement recently secured by BHP Group. Fortescue is currently supplying under short-term contracts that have been extended pending the conclusion of these negotiations. Meanwhile, investors continue to monitor geopolitical developments in the Middle East, where stalled US–Iran peace talks and the effective closure of the Strait of Hormuz are constraining access to a key export market for Chinese steel.